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Cigna will cap how much employers and health plans spend on GLP-1s—diabetes drugs that have become popular weight loss options despite their hefty price tags—company executives announced Thursday.
Cigna subsidiary Evernorth Health Services is expanding its EncircleRx program to help companies and plans manage GLP-1 spending via a cost cap. Adam Kautzner, president of Express Scripts and Evernorth Care Management, said the “industry-first financial guarantee offers employers and health plans greater predictability and control.”
Cigna will limit spending to up to 15% annually—well below the 40%–50% spending some plans are spending on weight loss and diabetes drugs, CNBC reported. The announcement comes as employers consider whether they should cover GLP-1s, which can drive up spending and costs $1,000+ per patient per month.
Evernorth executives noted that the company has “established unique agreements that enable EncircleRx to support patients who will benefit the most from a combination of medication and lifestyle modifications while also providing plans with greater control and predictability over the cost of GLP-1 therapies.”
CNBC reported that these include agreements with drugmakers Novo Nordisk and Eli Lilly.
A spokesperson for Evernorth didn’t immediately respond to Healthcare Brew’s request for comment.