Pharmaceuticals like Ozempic and other weight loss medications may also reduce overall healthcare expenses alongside encouraging weight loss.
In a recent study published in JAMA Network Open, researchers from Emory University have found that weight loss can lead to substantial savings in health care costs, both for individuals with private insurance and Medicare.
The study, which examined data from the Medical Expenditure Panel Survey-Household Component, a nationally representative survey of Americans' health-related spending, focused on individuals who had a body mass index over 25 (the cut-off for being overweight) and who had one or more of ten chronic conditions, eight of which are associated with obesity.
The research reveals that people who lost 25% of their weight spent 34% less on health care, nearly $3,000 for those with private insurance. For Medicare patients, the savings were similar percentage-wise but higher in money saved due to their higher net costs. Specifically, Medicare patients who lost 25% weight spent an average $5,442 less (31%), while those who lost 5% body weight spent an average $1,262 less (7%).
Interestingly, the study's findings are largely based on people who lost weight before the introduction of newer GLP-1 drugs. These medications, which treat both type 2 diabetes and obesity, have been shown to provide consistent weight loss in clinical trials. In trials, people have lost more weight taking GLP-1 medications compared to a placebo, with an average weight loss ranging from 10% to 20% over a year's time.
One such GLP-1 drug is Eli Lilly's Tirzepatide (marketed as Mounjaro and Zepbound), which received FDA approval this year and treats both type 2 diabetes and obesity. An oral version called Orforglipron is expected to be approved by the FDA by the end of 2025. Novo Nordisk’s GLP-1 drugs Ozempic and Wegovy, also approved for diabetes and obesity, received earlier approvals, with more recent label expansions such as for Semaglutide in August 2025.
Despite the potential benefits of these drugs, many private insurance plans have limited their coverage, while Medicare is explicitly banned from covering anti-obesity medications. However, the study's findings suggest that improving access to these medications could help reduce health care spending associated with obesity in the U.S.
The study also found that people who lost as little as 5% body weight over a year's time tended to spend less on health care. This is significant because improving access to new weight loss medications, along with existing evidence-based behavior change and weight loss interventions, could help more people achieve these weight loss goals and reap the associated health care savings.
Moreover, a study earlier this year estimated that higher uptake of GLP-1 drugs could prevent 42,000 deaths annually in the U.S. from obesity- or diabetes-related health problems. Given that many people taking GLP-1 therapy today may avoid developing these conditions, the projected savings in health care could be even higher than their estimates.
In conclusion, the study's findings have major implications for assessing the value of newer, more effective weight loss medications. By promoting access to these medications and supporting evidence-based weight loss interventions, we can potentially reduce health care spending associated with obesity in the U.S. and improve overall public health.
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