Federal Government to Subsidise Wegovy on PBS for Obesity Treatment
Canberra, 13 January 2026 – The federal government is set to negotiate with Novo Nordisk to list the weight-loss drug Wegovy on the Pharmaceutical Benefits Scheme, potentially reducing costs for eligible patients with severe obesity and cardiovascular disease.
Negotiations Underway
Health Minister Mark Butler confirmed on Friday that he has received recommendations from the Pharmaceutical Benefits Advisory Committee to subsidise Wegovy for adults with established cardiovascular disease and obesity. The minister stated that negotiations with the manufacturer are underway to secure a price that balances taxpayer costs with manufacturer interests. Butler described GLP-1 medications like Wegovy as an “extraordinary innovation” offering benefits beyond weight loss.
Eligibility and Impact
The PBS listing is expected to target patients with a body mass index of 35 kg/m² or higher, or 32.5 kg/m² or higher for Aboriginal, Torres Strait Islander, or Asian ethnicity groups, who have experienced a cardiovascular event such as a heart attack, stroke, or symptomatic peripheral arterial disease. Currently, nearly 500,000 Australians use GLP-1 medications out of pocket, with annual costs reaching up to $5,000. The subsidy could reduce this to around $25 per script for eligible patients.
Reactions from Health Organisations
The Royal Australian College of General Practitioners welcomed the move but emphasised the need for preventative health funding to address obesity at its source. Dietitians Australia raised concerns about potential malnutrition risks without nutritional support, advocating for multidisciplinary care. The Pharmaceutical Benefits Advisory Committee advised a slow rollout to manage expenditure risks.
Key Facts and Statistics
| Statistic | Details |
|---|---|
| Australians using GLP-1 medications | Nearly 500,000 (almost 2 per cent of adults) |
| Annual out-of-pocket cost | Up to $5,000 per person |
| Expected PBS subsidy cost | $25 per script (or $7.70 for concession holders) |
| Eligibility BMI threshold | 35 kg/m² (or 32.5 kg/m² for specific ethnic groups) with cardiovascular disease |
Frequently Asked Questions
What is Wegovy?
Wegovy is a semaglutide-based injectable medication used for chronic weight management in adults with obesity or overweight conditions accompanied by weight-related health issues.
Who will qualify for the PBS subsidy?
Eligible patients must have a BMI of 35 kg/m² or higher (or 32.5 kg/m² for Aboriginal, Torres Strait Islander, or Asian ethnicity) and have experienced a cardiovascular event such as a heart attack, stroke, or symptomatic peripheral arterial disease.
What are the potential costs to taxpayers?
The government anticipates a significant bill, with negotiations aimed at securing a fair price from Novo Nordisk to manage expenditure.
Are there concerns about the subsidy?
Health bodies have noted the importance of nutritional support to prevent malnutrition and the need for a managed rollout to avoid misuse.