The company that sells Ozempic and Wegovy, drugs known for promoting easy weight loss, is now selling the products at Costco.
Novo Nordisk, which manufactures the injectable pen semaglutide drugs for type 2 diabetes and weight loss, said in October it is making the prescription drugs available at Costco pharmacies for $499 for a four-week supply. Costco’s direct-to-consumer website and CVS and Walmart also sell the drugs for around that price.
The discount price is only for Costco members paying out of pocket. Members using insurance to purchase the drugs will have a different price that may vary depending on the insurance plan.
Novo Nordisk said it is making the discounted prescriptions available at more than 600 Costco pharmacies nationwide. In addition to treating diabetes and weight loss, GLP-1 drugs such as Ozempic and Wegovy have shown signs of improving outcomes for stroke risk, heart health, and liver disease.
Direct-Pay Benefits
The announcement could have a positive effect on public attitudes toward health insurance, as insurance companies have often blamed the cost of obesity drugs for rising premium prices, says Health Care News editor AnneMarie Schieber.
“So, [retailers] are going to sell [the drugs] for 500 bucks, which means that perhaps insurance companies and drug plans will say ‘No, we’re not going to pay for this—you can pay for it. Five hundred dollars a month is affordable if you value it,’” said Schieber on the October 15 episode of the Heartland Daily Podcast.
The FDA originally approved semaglutide for diabetes in 2017. Doctors have been prescribing the drugs off-label as a treatment for obesity. A 2024 report from KFF found up to 13 percent of U.S. adults had taken a semaglutide, and six percent were taking them at the time of the survey.
“I was just shocked when I read that one in eight people have tried these drugs,” said Schieber on the podcast. “They’re fairly new—we don’t know the long-term consequences. I would be afraid to take the drugs even if I had like 20 pounds to lose, because I’d be afraid that if I went off the drug, my weight would explode.”
Schieber’s cohost, health economist Devon Herrick, agreed.
“It is a great development—500, or 499 [dollars] a month is definitely a discount,” said Herrick. “Some of these drugs have a price of, I don’t know, like 1,200, 1,300 dollars a month, so yeah, that’s a great deal. It’s still expensive, but it’s affordable to some degree.”
More Use, More Information
If Ozempic and Wegovy become popular at the lower price, the drug makers will acquire more information about their effects, like a large clinical trial.
“Dosages vary,” said Herrick. “A morbidly obese individual with diabetes would be on a different dose than someone who’s just needing to lose some weight. I’ve written about saving money on drugs by, you know, using your brain.”
Herrick has written about how increased competition and reduced regulation can make drugs cheaper.
Big Potential Market
Lower prices allow many more people to try the drugs and see if they work, says Herrick.
“Regular people that are just 30 pounds overweight, let’s say,” are an untapped market for drugs like Ozempic and Wegovy, said Herrick on the podcast, of the people using the drugs for minor weight loss
“They’re selling it for $500 for people that are presumably obese or wealthier or vain,” said Herrick. “Why don’t they [price] it where ordinary people can microdose it for, say, $100 a month? There’s a huge market there.”
People in this group could try different dosages, says Herrick.
“I’m wondering if you could buy one auto injector that had a large quantity and just microdose it, and make it last more than a month, maybe two months, three months,” said Herrick.
“Maybe that’s where they’re going,” said Herrick on the podcast. “Maybe this is a first step.”
Other Potential Competition
Costco’s price cut could spur greater competition in a market where there is high consumer demand, says Herrick, such as from Mounjaro (tirzepatide), another drug for treating type 2 diabetes and obesity.
“Hopefully, this move will translate into more consumer-friendly prices and options for a wider audience,” said Herrick on the podcast.
Harry Painter ([email protected]) writes from Oklahoma.
Harry Painter ([email protected]) writes from Oklahoma.
