Drugmaker Eli Lilly said Wednesday it would lower the prices of its most frequently used insulins by 70% and expand a program to cap out-of-pocket costs for patients at $35.
The company will immediately cap out-of-pocket costs of insulin at $35 a month at participating retail pharmacies for people with private insurance, and those without insurance will be eligible for the cost cap under its copay assistance program following political pressure to make the drug more affordable.
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“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. 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 David Ricks, Eli Lilly’s chairman and CEO.
The company had previously set up its Lilly Insulin Value Program in 2020 to offer insulin to people for no more than $35 during the pandemic. Wednesday’s announcement will significantly expand that program to apply the $35 cap automatically versus requiring people to present an Eli Lilly savings card. Those without insurance will need to present the saving card in order to receive insulin products for $35 per month.
Cost cuts for Eli Lilly’s top-selling insulin products, Humalog and Humulin, will also take effect in the fourth quarter. It’s not clear what the finalized list prices will be, but Humalog is listed at $530 for a pack of five injection pens.
The announcement follows political pressure to place limits on out-of-pocket costs for insulin in Congress. A key provision under the Inflation Reduction Act also took effect this year that caps out-of-pocket costs for insulin at $35 a month for Medicare beneficiaries. A proposal to extend the insulin price cap for those covered under private insurance was rejected by Republican senators during negotiations for the Inflation Reduction Act, though the law later passed without GOP support.
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President Joe Biden called for instituting the insulin price cap for all patients during his State of the Union Speech last month.
“There are millions of other Americans who do not or are not on Medicare, including 200,000 young people with Type 1 diabetes who need this insulin to stay alive,” Biden said. “Let’s finish the job this time. Let’s cap the cost of insulin for everybody at $35.”
