Wegovy costs $1,349 in the US vs. $92 in the UK. Why are weight loss drugs so pricey?

Millions of Americans could have expanded Medicare and Medicaid to cover blockbuster weight loss drugs under a proposed federal rule announced Tuesday.

The medications ? part of a class of drugs called GLP-1, or glucagon-like peptide-1, receptor agonists ? were first used to treat diabetes but have since been approved for obesity, which has dramatically expanded the patient pool. The drugs reduce people's appetite, helping them lose weight.

The new rule by the Biden administration seeks to broaden access. About 42% of American adults are obese, according to the U.S. Centers for Disease Control and Prevention. That's up from 30% from 1999 to 2000.

Private insurance companies say U.S. patients aren't paying the true cost of expensive medications such as Wegovy and Zepbound, which can easily cost upwards of $1,000.

What is the true cost of GLP-1s?

Wegovy, the weight loss medication made by Novo Nordisk, is listed at $1,349 in the U.S. but sells for a fraction of that in Europe. In the United Kingdom, it costs $92, according to evidence provided to a U.S. Senate committee hearing in September.

In the U.S., insurance sponsored by employers and private insurance companies largely cover diabetes drugs such as Ozempic. The injection pen for the drug costs nearly $970 monthly at list price, according to its maker, Novo Nordisk.

The weight management drug Zepbound, made by the pharmaceutical giant Eli Lilly, has a list price of $1,060 for a 28-day supply, GoodRX.com said.

How much is typically covered?

The number of employers that cover GLP-1 drugs appears to be increasing. A recent survey by Mercer, a benefits consultant, found that 44% of large employers covered them for obesity, an increase from 41% in 2023.

What would expanded Medicare and Medicaid coverage mean?

Medicare is the federal program that provides health insurance to Americans ages 65 and older. The U.S. Department of Health and Human Services’ new rule expanding coverage would affect 3.4 million Medicare recipients.

Medicaid provides coverage to lower-income Americans. Around 4 million Medicaid recipients could gain coverage under the proposed rule. States would have the option to pay for it.

Centers for Medicare & Medicaid Services officials estimate the expansion would cost about $40 billion over 10 years.

It is unclear how the Trump administration will handle the proposal. However, President-elect Donald Trump's pick to lead HHS, Robert F. Kennedy Jr., has said Americans should just eat better.

If finalized, the rule would take effect in 2026.

Karen Weintraub and Alyssa Goldberg of USA TODAY contributed to this report.

This article originally appeared on USA TODAY: Why weight loss drugs, like Wegovy, are astronomically priced