How the GLP-1 Price Index Works: Reading the Numbers
The GLP-1 Price Index tracks the median effective monthly cost of a defined category, sets a baseline period to 100, and expresses current prices relative to it. It keeps categories separate so incomparable options are never merged. The index uses the median rather than the mean and weights every eligible program equally, so no single cheap or expensive outlier and no commercial relationship can distort where the category median actually sits.
- The index tracks median effective monthly cost per defined category.
- Baseline period is set to 100; current value shows movement relative to it.
- Median (not mean) is used; each program is weighted equally.
- Categories stay separate — brand, compounded, semaglutide, tirzepatide never merged.
What the index measures
The GLP-1 Price Index is a reproducible measure of what a category of GLP-1 program costs over time. For each category — for example, compounded semaglutide standard injection — it takes every eligible program's effective monthly cost and computes the median.
Effective monthly cost is total mandatory payments for the treatment period divided by months supplied, so the index reflects real cost, not headline price.
The result is a single number that describes the category's typical price, which can be tracked as it changes.
Baseline and index value
The index expresses current prices relative to a baseline period, whose median is set to 100. The current index value is the current median divided by the baseline median, times 100. A value of 110 means the category median is 10% above baseline; 90 means 10% below.
The first snapshot necessarily reads 100, because it defines the baseline. Movement only appears once a second snapshot exists, which is why our current index is honestly labeled a mixed-status baseline snapshot rather than a series with trends.
This is standard index construction, the same logic used for price indices in other fields.
| Step | Detail |
|---|---|
| 1. Effective cost | Total mandatory payments ÷ months |
| 2. Category median | Median across eligible programs |
| 3. Baseline = 100 | Baseline-period median anchored to 100 |
| 4. Index value | (Current median ÷ baseline) × 100 |
The rules that keep it honest
Three rules protect the index from distortion. It uses the median rather than the mean, so one very cheap or expensive program does not skew it. It weights every eligible program equally, never by affiliate status, revenue, or traffic. And it excludes programs with conflicting or missing pricing rather than assigning a favorable placeholder.
Every snapshot publishes its sample size, eligible-program list, verification cutoff, and methodology version, so the number is reproducible from the underlying data.
Provider-reported figures are included but flagged; only first-party captures are labeled Verified.
Why categories stay separate
There is deliberately no single 'GLP-1 price.' Compounded semaglutide, compounded tirzepatide, sublingual ODT, microdose programs, and brand medications occupy different clinical and commercial categories with different cost structures.
Averaging a $145 compounded program with a $1,086 brand list price would produce a number describing no real patient's decision. Each category carries its own index, baseline, and sample.
This separation is the difference between an honest index and a misleading headline figure.
| Is | Isn't |
|---|---|
| Category median cost signal | A single 'GLP-1 price' |
| Reproducible from data | A marketing label |
| Equal-weighted | Weighted by affiliate status |
The bottom line
The GLP-1 Price Index takes the median effective monthly cost of a defined category, anchors it to a baseline of 100, and tracks movement over time, using rules that prevent distortion.
Currently it is a mixed-status baseline snapshot: one category, mostly provider-reported inputs, one verified input, and no history yet. It becomes a fuller index as more categories, verified inputs, and snapshots accumulate.
Read the index as a category-level cost signal, not a substitute for comparing specific programs at your dose.
Frequently asked questions
What does the index value mean?
It shows current category prices relative to a baseline of 100. 110 means 10% above baseline; 90 means 10% below.
Why is the current value 100?
Because it is the first snapshot, which defines the baseline. Movement appears once a second snapshot exists.
Why not one average GLP-1 price?
Because brand and compounded, semaglutide and tirzepatide have different cost structures. Averaging them would mislead. Each category has its own index.
Is the index verified?
Currently it is a mixed-status snapshot with one verified input and mostly provider-reported ones. It strengthens as first-party captures accumulate.
Sources
- FDA — drug labels and compounding status (Drugs@FDA, fda.gov/drugs/human-drug-compounding).
- Provider pricing and manufacturer sources, July 2026.
- Forbes Health, U.S. News reviews, July 2026.
- Evidence policy: evidence policy.