GLP-1 agonists are all the current craze: it is worth the cost? Exploring its current utility, health benefits, implications and economic costs
In recent years, medications known as GLP-1 receptor agonists have received significant attention from patients, clinicians, and insurers alike. Used for managing type 2 diabetes and increasingly for weight loss, drugs in this class — including Semaglutide and Tirzepatide — have shown impressive results in clinical trials. But with benefits come high costs, and many people are asking: Are GLP-1 agonists worth the price? This article explores the science, the health care benefits, implications and the economics.
What are GLP-1 agonists?
GLP-1 (glucagon-like peptide-1) receptor agonists are injectable medications that mimic a hormone naturally produced in the gut (1). They help regulate blood sugar by:
- Increasing insulin secretion when blood glucose is high
- Reducing glucagon release
- Slowing gastric emptying
- Reducing appetite and caloric intake
Originally developed for type 2 diabetes, these drugs also promote weight loss, leading to off-label use and new FDA approvals specifically for obesity management.
What are the clinical/ health benefits of GLP-1 Medication?
We are going to focus heavily on the weight loss benefits of GLP-1 agonists here. It is clear that GLP-1 agonists can give responding users upwards of 10-15% of total body weight loss (1). Even though this is still significantly lower than what can be achieved through bariatric surgery (approximately 30-35% of total body weight loss), the effects of medication can no longer be refuted.
Along with significant weight loss, there is clear benefit to weight related health conditions like type 2 diabetes, hypertension, hypercholesterolemia, obstructive sleep apnoea (2).
Over time, there has been more high-quality research that has shown benefits in cardiovascular (i.e. heart) health including incremental reduction in overall risk for heart attacks and stroke (2).
Regardless of all the GLP-1 agonist benefits, it is increasingly clear that users have to be on medication long term for the beneficial effects to be long lasting. This is a caveat that we are all slowly coming to grips with and changing how we view GLP-1 agonist use.
What are the cost implications and does the math add up?
For all of GLP-1 agonists benefits, the underlying issue remains, and this relates to its affordability especially when factoring in the need to take it long term.
At the current cost – GLP-1 agonist users would expect to pay anywhere between $150 to $600 AUD/ month depending on the choice of medication and their respective dosing. This would equate to $1800 – $7200/ year. When extrapolating that to long term use over 40-50 years, the overall life-time cost would be substantial – $90000 – $288000. This is an aspect that all users need to consider before committing to GLP-1 agonist.
As a comparison, the cost for bariatric surgery (including aftercare) in the current climate would range between $15000 to $22000 (AUD) self funded or $4500 to $6500 with health insurance. Even though this is still a substantial outlay, the cost would pale in comparison to long term GLP-1 agonist use. At the current state, bariatric surgery still offers significantly better long-term weight loss outcomes when compared to GLP-1 agonists and should be a serious option for any patients who are open to the idea of surgery.
Click HERE to understand the costs involved with bariatric surgery.
Why subsidising GLP-1 agonist is harder than we think
Governments have fixed health care budgets and expanding coverage (i.e. PBS) without careful consideration can blow out spending, putting significant strains on our already fragile economy.
A recent US landmark study had calculated the incremental cost-effectiveness ratios of Trizepatide and Semaglutide to be $197 023 (US dollars) /quality adjusted life years and $467 676 (US dollars) /quality adjusted life years, respectively. This evaluation sits significantly higher than the threshold of $100000/quality adjusted life year that make interventions worthwhile to fund (3). According to the study, tirzepatide would need a 30% price reduction to meet that mark, and semaglutide would need to cost 80% less than it currently does. Their projections showed that if Medicare expanded coverage, three million beneficiaries would likely start using the drugs over the next decade. Drug costs would total nearly $66 billion, with about $18 billion saved through reduced hospitalizations and chronic disease care. The net cost? $48 billion in new Medicare spending over 10 years.
Here in Australia, we would follow a similar model of assessment.
Even though the benefits of GLP-1 is clear, health agencies need to remain selective over who would qualify for subsidization of the medication. Currently this includes patients with established metabolic disease in type 2 diabetes. As reported, there is potential plans to expand PBS coverage to high-risk obesity (BMI >=35) patients with established cardiovascular disease (4).
One counter argument to this would be that obesity is a major risk factor to a host of medical problems and wouldn’t it more cost effective to treat the problem before it eventuates. Even though this may be true, the issue here is establishing accurate models that would prove cost effectiveness without applying a blanket rule and over treating.
At the recent International Federation of Surgery for Obesity/ Metabolic Disease (IFSO Santiago 2025), there has been similar discussions about redefining clinical obesity to improve engagement with government bodies and expanding surgery coverage.
How does this all apply to you?
GLP-1 agonists have been proven to be effective in managing weight related issues although in the current climate, it is important to understand the financial implications. A lot of patients who start the medication carry the intention of using it short term rather than for what it is intended. This would more often than not, only garner short term results with patients experiencing significant weight rebound and a return of hunger once stopping the medication.
Just like any intervention, the use of GLP-1 agonists needs to be individualised, and it is important to discuss with a qualified medical or surgical professional on whether you would benefit from the medication before starting them. Similar to any weight loss intervention, it is important to have the right mindset to get the most out of GLP-1 agonists. Over-reliance on the medication without actually changing your diet or engaging in lifestyle choices would mean that the medication is just helping to mask some of the existing issues at hand. Building a good foundation (i.e. improved diet/ lifestyle) will also help to adjust your metabolism, giving you the best chance in maintaining weight loss if you ever come off the medication.
If you are thinking of starting GLP-1 agonists, please ask yourself the following questions:
- Am I prepared to take the medication long term?
- It is financially viable for me to be on a GLP-1 agonist long term?
- Am I willing to make the necessary changes in my diet and lifestyle?
- Have I got the right supportive help around me including health care professionals and services
- For my current weight and medical issues, is bariatric surgery a more suitable alternative when considering the long-term costs and overall results?
References
- Collins L, Costello RA. Glucagon-Like Peptide-1 Receptor Agonists. [Updated 2024 Feb 29]. In: StatPearls [Internet]. Treasure Island (FL): StatPearls Publishing; 2025 Jan-. Available from: https://www.ncbi.nlm.nih.gov/books/NBK551568/
- Elissa Rennert-May, Braden Manns, Fiona Clement, Eldon Spackman, David Collister, Glen Sumner, Jenine Leal, Robert J.H. Miller, Derek S. Chew. Cost-Effectiveness of Semaglutide in Patients With Obesity and Cardiovascular Disease,Canadian Journal of Cardiology. Volume 41, Issue 1,2025, Pages 128-136. https://doi.org/10.1016/j.cjca.2024.09.025
- Hwang JH, Laiteerapong N, Huang ES, Kim DD. Lifetime Health Effects and Cost-Effectiveness of Tirzepatide and Semaglutide in US Adults. JAMA Health Forum. 2025;6(3):e245586. doi:10.1001/jamahealthforum.2024.5586
- https://www.abc.net.au/news/2026-01-12/wegovy-to-be-added-to-pbs/106218104
