In a surprising twist, two of the most unlikely allies – billionaire Elon Musk and Sen. Bernie Sanders – are standing together on one issue: the high cost of health care in America. Both agree that Americans are being charged way too much for essential medications like Ozempic and Wegovy, which treat diabetes and obesity.
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Bernie Sanders, a longtime advocate for affordable health care, has been vocal about Novo Nordisk NVO, the Danish company behind these drugs, charging American patients almost 10 times more than they charge in other countries like Germany.
A month's prescription for Wegovy costs $1,349 in the U.S., compared to $186 in Denmark, $140 in Germany, and $92 in the U.K.
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During a recent subcommittee hearing, Sanders called out Novo Nordisk’s CEO and demanded that Americans be treated fairly. "All we are saying, Mr. Jørgensen, is treat the American people the same way that you treat people all over the world – stop ripping us off."
Elon Musk, known for his clashes with Sanders over income inequality, surprised many by siding with the senator. He shared his struggles with weight and revealed he had used Wegovy to help him slim down.
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"Solving obesity greatly reduces the risk of other diseases, especially diabetes, and improves quality of life," Sanders quoted Musk as saying. And Musk followed up with, "I really am with Bernie on this one."
Novo Nordisk's CEO, Lars Fruergaard Jørgensen, admitted that a huge chunk of the company's revenue from these drugs comes from the U.S., but he tried to shift the blame to PBMs, who he says pocket 74 cents of every dollar made. This system, he argued, keeps prices high because PBMs get paid more when the list price is higher.
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Sanders wasn't buying it. He revealed that he had gotten a written promise from three major PBMs that they wouldn't drop coverage for Novo Nordisk's drugs if the company lowered its prices. But Jørgensen acted surprised and claimed he hadn't heard of any such deal.
The Federal Trade Commission (FTC) also released a report highlighting how pharmacy benefit managers (PBMs) are profiting at the expense of patients. These middlemen, who manage prescription drug benefits for insurers and employers, have been inflating drug prices and squeezing independent pharmacies.
According to a report, six major corporations manage about 90% of all prescriptions in the United States. This gives them the authority to set exorbitant medicine costs. Because of the high expense of prescription drugs, almost 30% of Americans have reported skipping dosages or limiting them.
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FTC Chair Lina M. Khan stated that the report “Details how PBMs can squeeze independent pharmacies that many Americans – especially those in rural communities – depend on for essential care. The FTC will continue using all our tools and authorities to scrutinize dominant players across health care markets and ensure Americans can access affordable health care.”
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Mark Cuban, another billionaire entrepreneur and owner of Cost Plus Drugs, quickly responded to the FTC's findings. In a tweet, he pointed out the obvious: "Anyone surprised by this? Please share with every CEO, CFO, and HR person you know. If you are a shareholder or Wall Street analyst, ask your portfolio companies who their PBM is, not if they are being ripped off, but how badly."
In a country where health care costs are sky-high and outcomes lag behind many other developed nations, it's rare to see such agreement across the political spectrum. But when both a billionaire tech mogul and a democratic socialist senator are on the same side, it might be time to take notice.
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