Since its emergence as a potential drug to treat obesity, Ozempic has been making an outsized impact on the U.S. healthcare industry. Now, as more and more Americans turn to weight loss medications, there are signs that the drugs could have lasting effects on the overall economy as well. Already, the food industry is seeing a shift in demand as consumers taking Ozempic buy fewer snack food items and order smaller quantities at restaurants. Other industries are seeing similar demand shifts. The fashion industry, for example, is seeing rising demand for certain sizes. Gyms and exercise equipment makers are seeing rising demand as individuals invest in healthier lifestyles.
One key issue for the many people who have turned to drugs like Ozempic is how they will pay for it. Unlike countries such as England and Canada where national health insurance largely covers the cost of health care, the United States, under the guidance of the Affordable Care Act (ACA), relies on private health insurance. As demand for weight loss medications soars, some health insurance plans are putting caps on how much they will cover, often leaving individuals with the difficult choice of whether to pay for the medication themselves or stop taking it. One of the drawbacks of Ozempic is the need to continue to take it, or risk regaining weight. However, given that the drug can take a huge bite out of budgets, many people may ultimately have little choice in the matter. The tradeoff between paying out of pocket or halting treatment is complex, though. Because the drugs have proved to be helpful for a host of other conditions, people who had been dealing with comorbidities, may no longer need other medications creating savings for insurance companies and individuals.
Discussion Questions:
- Healthcare is one of the biggest industries in the United States, so when there’s a disruption to
business as usual, the knock-on effects can be far reaching. Explain how the availability of
weight loss drugs is changing the health care industry. What do they mean for the economy as a
whole? - Demand for Ozempic has surged ever since it was shown to not only be an effective
medication for patients with diabetes but also an effective weight loss drug. Given that obese
patients often have comorbidities, obesity in the United States puts a significant strain on the
healthcare system. Discuss Ozempic as a potential game changer in the challenge to deal with
rising health care costs.
Sources| PBS: https://www.pbs.org/newshour/show/the-many-ways-new-weight-loss-drugs-could-transform-the-economy; BBC: https://www.bbc.com/worklife/article/20250220-hotdogs-and-motorways-the-ripples-created-by-denmarks-ozempic-and-wegovy-boom; Washington Post: https://www.washingtonpost.com/opinions/2024/12/31/ozempic-weight-loss-economy-2025/;Unsplash: Photo by Haberdoedas on Unsplash