The manufacturer of Wegovy and Ozempic will testify on the price of the drugs

Should the government play a role in setting prescription drug prices in our country? To some extent, it already does for some Medicare beneficiaries starting in 2026. But that involvement will not last and depends largely on the outcome of this election.

Lawmakers will be taking a close look at the high costs of weight-loss and diabetes drugs, which can range from zero to more than $1,000 a month if they are not covered by insurance, depending on your health insurance plan.

The high cost of prescription drugs is not a new issue in this country. According to a survey by Rand Health Care, the annual cost of prescription drugs in 2022 was about $1,400 per person.

Under current law, the price of insulin for Medicare beneficiaries is $35 a month. Starting in 2026, prices for select drugs for Medicare beneficiaries will be negotiated by the federal government.

RELATED STORY | Medicare negotiates drug prices. Why it's important

But should the government play an even bigger role? On Tuesday, the CEO of Novo Nordisk, the maker of popular diabetes and weight-loss drugs Ozempic and Wegovy, will testify before the Senate Health Committee.

A report prepared by the committee earlier this year found that the company was charging Americans with type 2 diabetes $969 a month for Ozempic, while the same drug is available in Germany for just $59.

The same report found that the obesity drug Wegovy costs $1,349 in the United States, but only $140 in Germany.

Norvo Nordisk told Scripps News that Ozempic and Wegovy prices have dropped since their launch and said the company will continue to work with policymakers on real solutions.

Vermont Senator Bernie Sanders previewed his high-profile hearing last week, with government involvement in price-fixing a controversial topic on Capitol Hill.

Republican Senator Mitch McConnell of Kentucky is one of the most vocal opponents of government interference. He argues that if pharmaceutical companies no longer have an incentive to make big profits, they might stop developing financially risky new drugs.

“When the federal government dictates outcomes, it destroys the incentives that drive innovators to pursue cutting-edge research and development at scale,” McConnell said.

In fact, any change in the government's role in prescription drug pricing going forward will depend on the outcome of the election.

Experts say the likelihood of new laws being passed or existing ones being repealed would increase if one party controlled the White House, the Senate and the House of Representatives.

RELATED STORY | Medicare will expand to cover more mental health needs in 2024