ZorroCard Round Up (10/1/24)

Hey all,

Today’s update is heavy on rebates and GLP-1s (i.e. Ozempic/Mounjaro). I’m reminded how our pharmaceutical market is so distorted by opaque systems when I try to explain these issues to people outside of the pharmaceutical industry. I hope you enjoy learning more.

Jacob Brody (Co-Founder & CEO, ZorroCard)

BenefitsPRO and (Employer Plans and GLP-1 Drug Rebate Issues): Employers providing health coverage are facing challenges from GLP-1 anti-obesity drug suppliers, like those producing Ozempic, who threaten to withdraw rebates if these drugs are placed under utilization management programs. These tactics could significantly impact employers’ cost-containment strategies, raising concerns among large employer plan groups. This development may lead to higher costs for employer-sponsored plans as suppliers push back on rebate agreements. Full Article

Fierce Healthcare and (J&J’s 340B Discount Rebate Plan Withdrawal): Johnson & Johnson has withdrawn its controversial 340B rebate plan after pressure from the Health Resources and Services Administration (HRSA), which threatened legal consequences. The plan aimed to replace upfront drug discounts with rebates for hospitals, sparking backlash from hospital groups who argued it would financially burden them. J&J defended the rebate model as necessary for transparency but halted implementation under HRSA’s duress. Full Article.

Employer Coverage and (GLP-1 Medications’ Impact on Liver Disease): A Veterans Administration study found that GLP-1 medications significantly reduced the progression to liver failure in diabetic patients without pre-existing liver damage. These drugs also lowered the risks of death and liver cancer by 11%. The findings support GLP-1 coverage for diabetes management, aligning with prior studies linking GLP-1s to better cardiovascular and kidney outcomes. Full Article