Insurance and Drug Shortages are Changing how Healthcare is played.

The demand for GLP 1 medications has risen faster than anyone expected. These medications have transformed obesity and diabetes care, but they have also exposed large gaps in access. For many people, the biggest barriers have been affordability, strict insurance requirements, and pharmacy shelves that remain empty for months at a time. In the middle of all this, interest in compounded GLP 1 medications has grown, sometimes out of necessity and sometimes out of frustration.

Compounding has always existed as part of the pharmacy world, but its visibility has increased dramatically over the past few years. Many patients began exploring compounded GLP 1s because they seemed more available and more affordable than branded products. At the same time, the FDA has warned that compounding must be handled carefully and responsibly because safety and quality depend heavily on the practices of the specific pharmacy preparing the medication.

What Compounded Medications Are and Why They Exist

Compounded medications are created by licensed pharmacies for individual patients who need a formulation that is not available commercially. Sometimes this is because a person is allergic to an ingredient in an approved medication or needs a different dose form that the manufacturer does not produce. In other cases, compounding becomes relevant when an FDA approved medication is unavailable due to a shortage.

Compounded GLP 1s became widely discussed when many patients suddenly found themselves unable to refill their prescriptions for semaglutide or tirzepatide. Pharmacies routinely ran out of stock, and waitlists stretched for weeks. During this period, compounded versions offered a path for some patients to stay on treatment. However, it is important to recognize that compounded medications are not FDA approved. Their quality is not evaluated through the same regulatory process that branded medications undergo, and their safety relies on the standards of the individual pharmacy producing them (U.S. Food and Drug Administration, 2025).

Insurance Barriers That Led People Toward Compounding

Another major factor pushing patients toward compounding was insurance coverage. Many people discovered that even though their clinician recommended a GLP 1 medication, their insurance would not cover it or required a high level of documentation before approval. Prior authorizations became a significant roadblock. Some insurance plans required patients to fail other treatments before approving a GLP 1. Others imposed strict BMI cutoffs or removed coverage unexpectedly. Even when a medication was approved, copays and deductibles were sometimes so high that the treatment remained financially out of reach.

Surveys show that cost is one of the leading reasons people abandon GLP 1 therapy altogether (KFF, 2024). In that context, compounded medications, which were often more affordable, began to look like a practical solution for many individuals. Mochi Health works with patients to help them understand these coverage challenges and explore options. If you want to see whether you qualify for treatment within our program, you can begin here:
Check your eligibility.

How Drug Shortages Increased Demand for Compounded GLP 1s

As demand for GLP 1s surged nationwide, many pharmacies completely ran out of branded semaglutide and tirzepatide. When a medication is officially listed as being in shortage, compounding pharmacies are allowed to prepare versions as long as certain conditions are met. This is meant to ensure patients can continue treatment during temporary supply disruptions.

During this period, compounded GLP 1s became appealing because they were more reliably available. Many patients reported that they no longer had to call multiple pharmacies or wait for backordered stock. For those who had spent weeks without medication, compounded options allowed them to resume treatment without interruption. Lower prices added to the appeal, especially for those who were paying out of pocket for brand name medications.

Why Patients Gravitate Toward Compounded Options

Many people who turned to compounded GLP 1s described the experience as smoother and more predictable. The cost was often lower and more stable. Communication was more direct, and refills were processed more quickly than at large national pharmacy chains. Patients who relied on mail order options often found compounded GLP 1s easier to receive on time.

For people already dealing with complex chronic health needs, consistency and predictability matter. Some patients also expressed that working with a telehealth program connected to a reputable compounding pharmacy felt safer than trying to navigate online sellers offering questionable products. When done responsibly, compounding can serve a legitimate role for certain patients, especially when access to an approved drug is limited.

FDA Safety Concerns and Evolving Regulations

While compounded GLP 1s helped many people during the shortage, regulators have raised important concerns. Some compounders used semaglutide salt forms that were different from the active ingredient studied in clinical trials. Standardization varied widely between pharmacies. Because these compounded versions are not FDA approved, potency and purity are not guaranteed in the same way they are for branded medications.

The FDA issued warnings in 2024 and 2025 to clarify that compounded GLP 1s should be used only when an FDA approved product is not available or when a patient genuinely cannot use the approved product for specific medical reasons. As branded supply has improved, the FDA has begun reducing the allowances that were granted during the shortage. Some compounded products that were permitted before may no longer be allowed moving forward (U.S. Food and Drug Administration, 2024; 2025).

What Compounding Will Look Like Going Forward

Compounding is not disappearing. It will continue to play an important role for patients who need custom formulations or cannot tolerate certain inactive ingredients. It may also remain relevant during temporary shortages or specific situations where FDA approved options are unavailable. However, the landscape is shifting toward tighter oversight, more scrutiny, and clearer rules.

Responsible clinical programs will treat compounding as one option within a broader treatment toolkit. Safety, transparency, and pharmacy quality must remain priorities. Patients benefit most when a licensed clinician helps determine whether a compounded option is appropriate and ensures that the pharmacy involved meets high safety standards.

If you are trying to decide which path makes sense for your situation, a structured program like Mochi Health can help guide you. 

FAQs: Compounding, Insurance, and Access

Are compounded GLP 1s FDA approved
No. Compounded medications are not FDA approved. They do not go through the same approval process as branded drugs and are prepared on a patient by patient basis.

Are compounded GLP 1s cheaper
Many patients have found them more affordable than paying cash for a branded product without insurance, although prices vary depending on the pharmacy.

Why did compounded GLP 1s become popular
Patients were drawn to them because of pharmacy shortages, high branded medication prices, strict insurance rules, and the desire for more predictable access.

Are compounded medications still allowed now that shortages are improving
Some types are being phased out. The continued availability of certain compounded GLP 1s depends on the medication, the dosage form, and the current FDA shortage status.

Check Your Eligibility

If you are interested in GLP 1 treatment or want to learn whether compounded semaglutide is an option for you, you can start by completing Mochi’s simple eligibility questionnaire. It only takes a few minutes and helps our clinical team understand your goals, medical history, and the safest path forward. Every patient receives personalized guidance, clear information about medication options, and support throughout their care. You can begin your eligibility check today and take the first step toward consistent, accessible, and dependable obesity treatment with Mochi.
Check your eligibility

References

KFF. (2024). KFF Health Tracking Poll: The public’s use and views of GLP 1 drugs.

U.S. Food and Drug Administration. (2024). FDA’s concerns with unapproved GLP 1 drugs used for weight loss.

U.S. Food and Drug Administration. (2025). Clarifying policies for compounders as national GLP 1 supply stabilizes.