Surge in diabetes drug usage sparks new outcome study

In a recent government meeting, officials discussed significant trends in the use of GLP-1 agonist medications for type two diabetes, revealing a dramatic increase in both the number of recipients and the average spending per recipient over the past decade. The number of individuals utilizing these drugs has surged from fewer than 700 ten years ago to nearly 11,000 by the end of 2023. Concurrently, the average expenditure per recipient has risen from just under $2,000 to approximately $5,300.

Officials highlighted the effectiveness of these medications, noting that evidence supports their positive impact on diabetes management. To further assess their outcomes, the agency's analytics division is collaborating with a university partner to conduct a comprehensive outcome study. This study aims to track various health outcomes among recipients, although it is still in the preliminary stages.

The meeting also addressed the federal drug rebate program, which mandates that drug manufacturers provide rebates to state Medicaid agencies for covering Medicaid recipients. In exchange, states are generally required to offer coverage for all FDA-approved outpatient drugs, known as covered outpatient drugs (CODs). However, there are exceptions based on accepted indications, which were briefly outlined during the discussion.

Officials welcomed feedback from meeting participants, emphasizing the importance of ongoing dialogue as they navigate the complexities of drug coverage and its implications for public health.