Good morning. I know several people on GLP-1 drugs. Some transformed their health; one used it to shed 10 pounds that nobody thought she needed to lose. Such drugs have become the fastest-growing segment of drug spending, accounting for 10.5% of employers’ average pharmacy costs so far this year, vs. 8.9% in 2024. That’s up from 6.9% in 2023, when Americans spent $71.7 billion on such drugs. On average, employers pay between $8,000 and $10,000 per user each year for these drugs through healthcare plans.
I spoke with GoodRx CEO Wendy Barnes on the eve of the company’s announcement yesterday that it will offer various strengths of Ozempic and Wegovy for a cash price of $499 a month, which is roughly half the normal cost. Simple math would suggest that could be an attractive price for companies, too, which raises the question of how the growing list of consumer-focused healthcare offerings could impact the traditional employer-pay model.
“I would challenge the notion that all drug spend needs to flow through an insured model,” said Barnes. “We’re trying to get competitive pricing in the hands of every American.”
That argument resonates with Mark Bertolini, the former CEO of Aetna who’s now heading up Oscar Health, which is aiming for a more dynamic, personalized model of health insurance, not unlike what Progressive has done in other realms of insurance.
“In every other part of the economy, I get to buy the product I want at the price I want to pay, and I have an opportunity to shop and see what’s available,” he told me yesterday. “In healthcare, for the most part, employers pick a network that covers all their employees,” which can mean less choice and less satisfaction.
Bertolini calls this the “retailization” of health insurance, and GoodRx’s GLP-1 announcement could be emblematic of a more holistic system where employers encourage workers to pick from a broader menu of options. (John Hancock offers discounts on Prenuvo body scans, for example.)
Barnes, meanwhile, told me that GoodRx will be launching a subscription program around weight loss before the end of this year and she sees discount cash pricing as a complement to employer offerings that grow more restrictive in a bid to trim costs. And while moves in Washington have raised concerns about Americans’ healthcare coverage, Barnes sees opportunity in the government’s mandate to reduce drug prices and create more direct-to-patient pathways.
“Payers are not going anywhere but they will no longer have complete control over what you or I do from a benefit perspective,” said Barnes, who of course hopes more leaders will help employees get the best price they can for the drugs they need—and want.
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
Top news
Trump, Putin, and Zelensky headed for “Trilat”
Peace talks to end the war in Ukraine reached a crucial new stage after President Trump “discussed Security Guarantees for Ukraine … with a coordination with the United States of America.” The next step, Trump says, is a three-way meeting with Ukraine’s Zelensky. “At the conclusion of the meetings, I called President Putin, and began the arrangements for a meeting, at a location to be determined, between President Putin and President Zelenskyy. After that meeting takes place, we will have a Trilat, which would be the two Presidents, plus myself.”
Trump rails against the WSJ
“I’ve settled 6 Wars in 6 months, one of them a possible Nuclear disaster, and yet I have to read & listen to the Wall Street Journal, and many other who truly don’t have a clue, tell me everything that I am doing wrong on the Russia/Ukraine MESS, that is Sleepy Joe Biden’s war, not mine,” he said on social media. ”I know exactly what I’m doing, and I don’t need the advice of people who have been working on all of these conflicts for years, and were never able to do a thing to stop them.”
Putin advises Trump on voting security
The president told Fox News’s Sean Hannity that Putin had told him in Alaska, “Your election was rigged because you have mail-in voting.” On Monday, Trump posted that he would end mail-in voting. Context: There is no evidence that U.S. federal elections are affected by widespread voter fraud. In fact, Newsmax just settled a lawsuit for $67 million after falsely claiming that the 2020 election was rigged.
White House considers 10% stake in Intel
Under the notional proposal, Intel’s $10.9 billion in Chips Act grants would be converted into equity, making the Trump administration the company’s largest stockholder, Bloomberg reported. It is not clear how seriously the idea is being pursued.
Nasdaq plagued by meme stock pump-and-dumps
Seven small Chinese companies listed on the U.S.-based Nasdaq saw $3.7 billion wiped off their value after their stocks were talked up on social media and then suddenly sold off. The scam starts on social media, where hundreds of retail investors are persuaded via ads to join Whatsapp investor groups. The groups can be very convincing.
OpenAI CEO admits to GPT-5 rollout mistakes
OpenAI CEO Sam Altman reportedly admitted to reporters last week that the company “totally screwed up some things on the rollout” of its GPT-5 AI model earlier this month. He also noted the company will need to spend trillions on data centers to continue scaling the product.
Altman also says AI is in a “bubble” phase
In remarks at a recent dinner, he used the word “bubble” three times in 15 seconds, according to CNBC, and then said, “I’m sure someone’s gonna write some sensational headline about that. I wish you wouldn’t, but that’s fine.” he also said, “Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes.”
Soho House goes private
A group of investors led by MCR Hotels agreed to acquire Soho House, the network of members-only social clubs, for $2.7 billion. Soho House traded on the New York Stock Exchange for the past four years but consistently underperformed and lost money.
“Job-hugging” takes hold across the U.S.
Consultants say that workers in the U.S. are “job-hugging,” clinging to their current positions for stability as job prospects stagnate and management turnover rises. Some warn that this could lead to a new “Great Resignation” once prospects improve.
DOJ will give Congress more Epstein files on Friday
The agency is responding to a subpoena by the House Oversight Committee for all its records relating to the disgraced financier.
The markets
S&P 500 futures were marginally down 0.11% this morning, premarket, after the index closed flat yesterday near its record high. STOXX Europe 600 was up 0.13% in early trading. The U.K.’s FTSE 100 was flat in early trading. Japan’s Nikkei 225 was down 0.38% to hit another record high. China’s CSI 300 was down 0.38%. The South Korea KOSPI was down 0.81%. India’s Nifty 50 was up 0.37% before the end of the session. Bitcoin fell to $114.9K.
Around the watercooler
Kumail Nanjiani says Elon Musk did not like HBO’s ‘Silicon Valley’: ‘He was like, all the parties I go to are much cooler than these parties’ by Dave Smith
‘Quiet cracking’ is spreading in offices: Half of workers are at breaking point, and it’s costing companies $438 billion in productivity loss by Emma Burleigh and Orianna Rosa Royle
Ex-Google exec says degrees in law and medicine are a waste of time because they take so long to complete that AI will catch up by graduation by Preston Fore
Duolingo CEO admits his controversial AI memo ‘did not give enough context’ and insists the company never laid off full-time employees by Jessica Coacci
CEO Daily is compiled and edited by Joey Abrams and Jim Edwards.
