Maryland Sets Price Cap on Ozempic as Drug Affordability Boards Gain Momentum

Maryland's state prescription drug affordability board set a price cap on Ozempic, the popular diabetes and weight loss drug made by Novo Nordisk. The move makes Maryland one of the first states to cap the price of a GLP-1 medication.

Ozempic, which contains semaglutide, costs more than $900 per month in the United States without insurance. The drug is widely prescribed for type 2 diabetes and is also used off-label for weight loss. A new oral version of Ozempic was approved this year for type 2 diabetes.

Maryland's drug affordability board has the authority to set upper payment limits for drugs sold in the state. The board determined that Ozempic's price was not justified by its clinical value and set a lower cap.

Drug affordability advocates praised the decision. "This is exactly what these boards were created to do," said one health policy analyst. "Ozempic is a life-changing drug for many patients, but the price has put it out of reach for too many people."

Novo Nordisk said it would review the decision and consider its legal options. The company has argued that high drug prices in the United States fund research and development that benefits patients worldwide.

The Supreme Court also rejected a challenge to Medicare drug price negotiation this week, upholding the government's authority to negotiate prices for certain high-cost drugs. The ruling is expected to lower costs for some of the most expensive medications covered by Medicare.

One-third of U.S. adults have cut back on essentials like food and utilities to cover healthcare expenses, according to recent surveys. The cost of prescription drugs is a major driver of healthcare affordability concerns.

Several other states are considering similar drug affordability board legislation. Colorado, Oregon, and Washington already have boards with varying levels of authority to address drug prices.