HBF Cuts Weight Loss Drug Rebates, Sparking Concerns
Western Australia's largest private health insurer, HBF, has announced a significant reduction in rebates for weight loss medications, including the popular drug Ozempic. This decision has sparked concerns among members who rely on these medications for their health and well-being.
HBF cited the rising cost of claims for weight loss medications as the primary reason for the cuts. The insurer stated that claims for these medications have doubled since 2021, accounting for approximately 40% of their off-schedule pharmaceutical spending.
The changes will take effect from August 2023 and will impact members who currently hold cover for pharmaceuticals. Benefits for some medications, including Wegovy and certain compound medications, will be completely eliminated. For other medications, including those containing semaglutide (the active ingredient in Ozempic), benefits will be halved.
HBF CEO Lachlan Henderson acknowledged the health benefits of these medications but emphasized the financial strain they place on the insurer. He stated that HBF pays out approximately $9 million annually for off-schedule pharmaceuticals, and this amount has doubled since 2021.
However, HBF members like Max, who has experienced significant weight loss and improved health with Ozempic, expressed disappointment with the decision. He questioned why weight loss treatment should be treated differently from other covered treatments like remedial massage or dental care. Max also highlighted the potential negative impact on his health if he can no longer afford Ozempic.
The decision by HBF raises concerns about the accessibility of weight loss medications for individuals who rely on them for their health and well-being. It also highlights the challenges faced by private health insurers in balancing the cost of medications with the needs of their members.