Amidst consumer outrage, Eli Lilly finally cuts insulin prices
Perhaps the biggest news in health care – so far, in 2023 – is drugmaker Eli Lilly’s announcement that it would cap the out-of-pocket cost consumers pay for insulin at $35 a month for people with insurance.
An estimated 38 million Americans – roughly 10% of the population – suffer from diabetes and about 8 million require insulin to treat their disease. For years, Voices for Affordable Health has heard from concerned consumers who simply can no longer afford this life saving medication, which can cost hundreds of dollars a month.
Before we nominate Eli Lilly for a Good Citizen award, keep in mind that the pressure was mounting for the drugmaker to trim its insulin profits from obscene to simply reasonable.
Eli Lilly – one of three insulin manufacturers that together control 90% of the global supply– had lost or was losing key political battles. For example, a new federal law caps insulin costs at $35 a month for Americans on Medicare. In January, Voices for Affordable Health shared that the state of California is suing insulin-makers Eli Lilly, Novo Nordisk and Sanofi for their “unlawful, unfair and deceptive” practices.
The Big Three insulin-makers are also being challenged by competitors who are bringing “biosimilar” medications to market at much lower costs. (To be FDA approved, a biosimilar drug must be as safe and as effective as the brand-name drug).
Nevertheless, drug-pricing experts interviewed by Kaiser Health News welcomed Eli Lilly’s decision and said it wouldn’t keep other lower-priced insulins from coming to market.
“The more competition, the more stable this solution will be so that five to 10 years from now the prices won’t go up again,” Dr. Vincent Rajkumar, a Mayo Clinic oncologist who has been a critic of high drug costs, told Kaiser Health News.
No word yet on whether Novo Nordisk or Sanofi intend to follow Eli Lilly’s lead.
What do you think? Will this decision make a difference in your life or for a loved one? How are you coping with rising Rx prices? Share your story with Voices for Affordable Health.