Pharmaceutical company Eli Lilly to cap insulin prices at $35 per month in US
Eli Lilly announced on Wednesday that it would drop the price on branded and non-branded insulins as well as capping out-of-pocket cost for customers.
Citing the challenge of people with diabetes attaining affordable insulin Eli Lilly has announced drastic price cuts of 70 percent on some of its branded and non-branded insulins in the near future. Additionally, the pharmaceutical company says that effective immediately it will cap out-of-pocket costs for patients who use Lilly insulin at $35 per month.
“While the current healthcare system provides access to insulin for most people with diabetes, it still does not provide affordable insulin for everyone and that needs to change,” said Eli Lilly Chair and CEO David A Ricks. “The aggressive price cuts we’re announcing today should make a real difference for Americans with diabetes.”
Last year, we capped insulin prices for seniors on Medicare, but there was more work to do. I called on Congress – and manufacturers – to lower insulin prices for everyone else. Today, Eli Lilly is heeding my call. Others should follow
When will Eli Lilly implement the price cuts?
Eli Lilly announced that it would drop the price for two of its branded insulin, Humulin and Humalog, Lilly’s most commonly prescribed form, by 70 percent. The current list price of a Humalog U-100 10 mL vial is $274.70. The price decreases will be effective starting in the fourth quarter of 2023.
However, its non-branded insulin Lispro, will see its price cut from over $82 to $25 a vial effective 1 May. That’ll make it less than the price of a Humalog vial in 1999 and the lowest list-priced mealtime insulin available.
“Because these price cuts will take time for the insurance and pharmacy system to implement, we are taking the additional step to immediately cap out-of-pocket costs for patients who use Lilly insulin and are not covered by the recent Medicare Part D cap,” said Ricks.
Eli Lilly to cap insulin prices at $35 per month in US
Effective immediately, Lilly is capping out-of-pocket costs for customers to $35 at participating retail pharmacies for people with commercial insurance that use the pharmaceutical company’s insulin. Those that don’t have insurance can use its Insulin Value Program to purchase Lilly insulins for no more than $35 month.
The price of insulin has been skyrocketing over the past 20 years despite the fact that it is relatively inexpensive to make. According to the American Diabetes Association the price almost tripled between 2002 and 2013. And the retail price has continued to rise since, 54 percent between 2014 and 2019. This has forced around 16.5 percent of people who rely on the lifes-sustaining medicine to ration how much they use.
President Biden has made lowering the cost of insulin for all diabetes patients one of his goals, calling on Congress to do so at his State of the Union this year. He made some progress last year with the Inflation Reduction Act which caps insulin prices at $35 per month for Medicare recipients. Although Democrats pushed to include those with private healthcare insurance or none at all, the measure was stripped by Republicans from the bill.
“Last year, we capped insulin prices for seniors on Medicare, but there was more work to do. I called on Congress – and manufacturers – to lower insulin prices for everyone else. Today, Eli Lilly is heeding my call. Others should follow,” President Biden posted on Twitter after the news of Eli Lilly’s price cuts were announced.