In today’s CEO Daily: Diane Brady talks to GoodRx CEO Wendy Barnes.
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Good morning. I know several people on GLP-1 drugs. Some transformed their health; one used it to shed 10 pounds nobody thought she needed to lose. Such drugs have become the fastest-growing segment of drug spending, accounting for 10.5% of employers’ average pharmacy costs so far this year, vs. 8.9% in 2024. That’s up from 6.9% in 2023, when Americans spent $71.7 billion on such drugs. On average, employers pay between $8,000 and $10,000 per user each year for these drugs through healthcare plans.
I spoke with GoodRx CEO Wendy Barnes on the eve of the company’s announcement yesterday that it will offer various strengths of Ozempic and Wegovy for a cash price of $499 a month, which is roughly half the normal cost. Simple math would suggest that could be an attractive price for companies, too, which raises the question of how the growing list of consumer-focused healthcare offerings could impact the traditional employer-pay model.
“I would challenge the notion that all drug spend needs to flow through an insured model,” said Barnes. “We’re trying to get competitive pricing in the hands of every American.”
That argument resonates with Mark Bertolini, the former CEO of Aetna who’s now heading up Oscar Health, which is aiming for a more dynamic, personalized model of health insurance, not unlike what Progressive has done in other realms of insurance.
“In every other part of the economy, I get to buy the product I want at the price I want to pay, and I have an opportunity to shop and see what’s available,” he told me yesterday. “In healthcare, for the most part, employers pick a network that covers all their employees,” which can mean less choice and less satisfaction.
Bertolini calls this the “retailization” of health insurance, and GoodRx’s GLP-1 announcement could be emblematic of a more holistic system where employers encourage workers to pick from a broader menu of options. (John Hancock offers discounts on Prenuvo body scans, for example.)
Barnes, meanwhile, told me that GoodRx will be launching a subscription program around weight loss before the end of this year and she sees discount cash pricing as a complement to employer offerings that grow more restrictive in a bid to trim costs. And while moves in Washington have raised concerns about Americans’ healthcare coverage, Barnes sees opportunity in the government’s mandate to reduce drug prices and create more direct-to-patient pathways.
“Payers are not going anywhere but they will no longer have complete control over what you or I do from a benefit perspective,” said Barnes, who of course, hopes more leaders will help employees get the best price they can for the drugs they need—and want.
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
This story was originally featured on Fortune.com
