GLP-1 Drugs Like Ozempic May Curb Impulse Spending, But Come With Financial Trade-offs

Researchers at the University of Pennsylvania's Wharton School are investigating whether GLP-1 medications, such as Ozempic and Wegovy, could lead to reduced impulsive spending by altering the brain's response to rewards. Michael Platt, a neuroscientist and professor at Wharton, told CBS News that these drugs might have lasting effects on financial decision-making beyond just influencing food choices. "It might be very good financially for the average person – maybe they're putting more money into savings," Platt suggested.

The research team plans to study approximately 180 participants, utilizing brain scans to observe how individuals taking GLP-1s react to spending opportunities and choices between immediate smaller financial gains and larger future ones. The scientists aim to determine if these medications can help individuals resist temptations like luxury purchases and gambling in favor of long-term financial objectives. However, the study is in its initial phases and has not yet conclusively demonstrated that the medications improve spending habits.

Meanwhile, evidence indicates that these drugs are already impacting household food expenses. A study published in the Journal of Marketing Research by Sylvia Hristakeva of Cornell University, Jūra Liaukonytė, and Leo Feler found that households with at least one GLP-1 user decreased their grocery spending by 5.3 percent within six months of starting treatment. Spending at fast-food establishments and coffee shops dropped by 8 percent, and purchases of savory snacks fell by 10.1 percent. Reddit users who have taken GLP-1s largely agreed that the medication was the primary reason for changes in their eating habits, with some reporting a reduced craving for high-sugar, high-fat foods and a significant decrease in their household grocery bills.

However, any financial savings on food may be counteracted by the cost of the medications themselves. A new survey from the Nationwide Retirement Institute revealed that 51 percent of current GLP-1 users fear they may have to choose between paying for their medication and saving for retirement. The survey, conducted by The Harris Poll, found that 54 percent of users have already altered their financial behavior to afford treatment.

Among those surveyed, 17 percent have taken on debt, 14 percent have withdrawn funds from savings, investments, or retirement accounts, and another 14 percent have reduced their retirement contributions. Kristi Martin Rodriguez, leader of the Nationwide Retirement Institute, stated in a press release that the increasing popularity of these medications necessitates consideration of how healthcare spending affects long-term financial plans. "If what you're spending on your health today is competing with what you's saving for tomorrow, that needs to be part of the financial planning conversation," she said.

For users whose insurance does not fully cover their prescriptions, the average out-of-pocket cost is approximately $203 per month. This expense could exacerbate financial pressures for individuals already struggling with retirement savings, potentially compelling them to draw from savings or incur debt to sustain treatment. "These drugs offer the potential for a longer, healthier life, but they also come with financial implications that we can't ignore," Rodriguez noted. "It's time to have a conversation about how the expense and benefits of these drugs impact our financial decisions today and our long-term financial outlook."