Drugmaker Eli Lilly and Company announced price reductions for many of its insulin products as well as a $35 monthly cap for what patients pay out of their own pockets for insulin.
Breaking News: Eli Lilly said it would cut the price of insulin, capping the monthly out-of-pocket cost of the lifesaving drug at $35.https://t.co/YpmNChhTbZ
— The New York Times (@nytimes) March 1, 2023
From the New York Times:
The move marks at least a partial retreat for a company that has been a primary contributor to soaring prices for an injection that millions of Americans rely on to keep their blood sugar levels in check.
It comes at a time of mounting political pressure on drug companies to rein in what lawmakers and other critics view as the industry’s pattern of abusive profiteering.
Over nearly three decades, for example, Lilly has raised the price on its most widely used insulin product, Humalog, by more than 1,000 percent.
It’s worth noting is the lower list prices will apply only to the company’s older insulin products. For instance, a vial of Humalog (Eli Lilly’s most commonly used insulin) currently has a list price of $275. And patients regularly go through several vials each month. Eli Lilly says it will cut the price to $66 per vial.
But – one of the companies newer iterations of Humalog, a prefilled insulin pen that has a list price of $530, is not part of the planned price reductions. Nor is the company’s long-acting insulin product, Basaglar.
The new pricing is expected to take effect the last three months of this year.
President Biden celebrated the news on Twitter pointing out that last year’s Inflation Reduction Act, which he signed into law, imposed a $35 a month ceiling on insulin co-payments for Medicare patients.
At the time, Democrats tried to bring down the cost of insulin for all Americans, but Republicans voted that down.
It’s estimated that about 7 million Americans use insulin to control their diabetes on a daily basis.
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. https://t.co/Kv57KFATe9
— President Biden (@POTUS) March 1, 2023
Please note that Democrats forced this change by capping Medicare prices. Every Republican voted against it.
— JellyKind (@JellyKind) March 1, 2023