# Spending, utilization, and price trends for anti-obesity medications in U.S. Medicaid programs: an empirical analysis from 1999 to 2023

## TL;DR

This study shows a massive rise in anti-obesity medication use and spending in U.S. Medicaid from 1999 to 2023, driven by newer, more expensive drugs.

## Contribution

The study provides the first comprehensive analysis of Medicaid trends in anti-obesity medication use and spending over 24 years.

## Key findings

- AOM prescriptions increased 6,674% from 13,855 in 1999 to 938,663 in 2023.
- Spending rose by over 77 million percent due to newer medications like Wegovy and tirzepatide.
- Newer AOMs dominated market growth in 2023.

## Abstract

Obesity poses a significant public health and economic challenge in the United States (U.S.), with rising prevalence, particularly among individuals enrolled in Medicaid—the nation’s public health insurance program for low-income populations. Anti-obesity medications (AOMs) have become integral to managing obesity, but trends in their utilization and spending within Medicaid remain underexplored.

To examine Medicaid’s utilization, reimbursement, and price trends for AOMs from 1999 to 2023.

A retrospective analysis assessing the utilization, reimbursement, and pricing of older and newer AOMs. Yearly prescription numbers and reimbursement were calculated for seven AOMs billed through Medicaid between 1999 and 2023. The average expenditure per prescription was used as an indicator of drug pricing.

AOM prescriptions rose from 13,855 in 1999 to 938,663 in 2023, a 6,674% increase. Spending surged by over 77,805,466% due to the introduction of newer, more effective medications, including Wegovy and tirzepatide. The largest share of the market growth in 2023 was driven by these medications.

The significant increase in AOM utilization and spending highlights the growing burden of obesity on Medicaid, emphasizing the need for policy measures to manage rising costs and ensure equitable access to treatment.