Delaware Department Of Insurance Issues First-Ever Report On Popular GLP-1 Diabetes And Obesity Treatments
Use of GLP-1 medications — widely prescribed for Type 2 diabetes and obesity — nearly doubled among Delaware’s fully insured commercial members between 2020 and 2023, according to a first-of-its-kind analysis released by the Department of Insurance’s Office of Value-Based Health Care Delivery. The review found that while utilization increased sharply, the expense of the drugs was almost entirely offset by manufacturer rebates. As a result, the medications have not been a significant driver of rising health insurance costs in the state. Insurance Commissioner Trinidad Navarro said the findings counter the perception that GLP-1s are straining insurance premiums. He added that while the other savings they produce can’t necessarily be quantified, such as managing chronic conditions, preventing emergency care, and reductions in other medications, GLP-1 medications are proving to be an important cost-effective tool in managing obesity and diabetes.
Additional Information from the DE Department of Insurance:
Here is the new first-in-the-nation analysis from the Department of Insurance’s Office of Value-Based Health Care Delivery.
Prices for the medications were relatively flat, after subtracting rebates, the analysis of data provided to the OVBHCD by Delaware’s three largest pharmacy benefit managers found. Rebates are payments typically made by a pharmaceutical manufacturer to a pharmacy benefit manager, who then shares all or some of rebate with the health insurer or employer.
Driven by the increase in use, total spending on GLP-1 medications more than doubled over the reviewed period. GLP-1 medications accounted for about 6 percent of all pharmacy spending for the Delaware commercial fully insured market. The trends in Delaware mirror those nationally.
In the coming months, the OVBHCD will expand its analysis of pharmacy spending to include all medications, offering further context to pharmacy spending among the commercial, fully insured population.
This report does not provide State of Delaware Group Health Insurance Plan GLP-1 data. Such data is not available in a manner that is inclusive of rebates, and solely reporting on spending can be inherently misleading due to the significant value of rebates received and fully retained by the State. In future contracts, the State’s PBM will be required to submit OVBHCD pharmacy data templates so information can be similarly analyzed by this expert team.
The Department of Insurance remains committed to supporting evidence-based care, improving access to effective treatments, and promoting transparency in the health care market. The Office’s findings will inform ongoing conversations about how to balance innovation with affordability in Delaware’s health care system.
Access the Report: Utilization Not Cost of GLP-1 Medications Drives Increased Spending
Office of Value-Based Health Care Delivery Website