Eli Lilly cuts insulin prices up to 70% amid federal pressure to lower costs

Why U.S. pharmaceutical drug prices have been rising dramatically since the 1990s

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Eli Lilly and Co. said it will cut prices of its most commonly prescribed insulins up to 70% and expand a program that limits out-of-pocket monthly costs for some consumers. 

The Indianapolis drugmaker’s price cuts and discounts for insulin come as federal and state lawmakers and patient advocates pressure drug companies and health insurers to improve affordability for the life-saving medication used by millions of Americans. 

“The aggressive price cuts we’re announcing today should make a real difference for Americans with diabetes,” said Lilly’s Chair and CEO David Ricks. 

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Medicare caps insulin costs at $35 a month. Can Biden get that price for everyone? 

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Eli Lilly discounts Humalog and Humulin insulin

The drugmaker will cut list prices by 70% for the fast-acting injectable Humalog, which is the company’s most commonly prescribed insulin. The discount applies to several Humalog products, including Humalog U-100, Humalog Mix 50/50 and Humalog Mix 75/25. Lilly will also discount an older fast-acting drug, Humulin.

The price changes will take effect between Oct. 1 and Dec. 31. 

Lilly also will reduce the price of its non-branded, fast-acting insulin to $25 a vial, effective May 1.  

On April 1, Lilly also will launch a biosimilar to Sanofi’s Lantus that will be less expensive version of the long-acting insulin. The new drug, Rezvoglar, will be interchangeable with Lantus, which means a pharmacist can substitute the drug without a new prescription. Rezvoglar will cost $92 per five pack of KwikPens, a 78% discount to Lantus, Lilly said. 

Lilly matches Medicare’s $35 insulin cap 

Lilly said in a news release that it will cap out-of-pocket costs for privately-insured consumers at $35 per month at the “majority of retail pharmacies.” Company officials said about 85% of national and local pharmacies will honor the $35 price cap, but the company did not provide a list. Consumers are encouraged to call their local pharmacy and ask about the program. 

For those without insurance, the drugmaker offers a program savings card that will cap Lilly insulin at $35 per month. Uninsured consumers can get more information and download the discount card at InsulinAffordability.com.

The price might sound familiar to older Americans on Medicare. The federal Inflation Reduction Act caps insulin costs at $35 a month for people on Part D plans. Last month, President Biden called on Congress to extend that out-of-pocket cap to younger Americans who directly purchase their own health insurance or get coverage through an employer.   

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Why is Lilly cutting insulin prices? 

A study last year found more than 1.3 million American adults skipped, delayed buying or rationed doses of insulin due to cost of the medication.

Ricks acknowledged his company and competitors must make insulin more affordable for people with diabetes who can’t afford the medication.

“We are driving for change in repricing older insulins, but we know that 7 out of 10 Americans don’t use Lilly insulin,” Ricks said. “We are calling on policymakers, employers, and others to join us in making insulin more affordable.” 

More: Fake Eli Lilly Twitter account falsely claimed insulin ‘free’

8.4 million Americans need insulin

Insulin is needed by all people with Type 1 and some with Type 2 diabetes. 

“Insulin is one of those medicines, particularly for those with Type 1 diabetes, that’s in the must have category,” said Dr. Robert Lash, chief medical officer of the Endocrine Society. “If you don’t have it, you die.”

Some with Type 2 diabetes also need insulin. While skipping a dose might not be life threatening, these people often need insulin to keep their glucose under control and avoid complications, Lash said.

The American Diabetes Association estimates about 8.4 million Americans rely on insulin. 

Lisa Murdock, chief advocacy officer for for American Diabetes Association, said reducing out-of-pocket expenses for this necessary drug is a critical step. As drug companies have hiked the price of insulin, insured consumers have absorbed some of those costs in the form of higher copayments and deductibles.

Cutting insulin list prices, capping co-payments for the insured and extending the $35 cap to the uninsured will make the medication more affordable for people who use Lilly’s products. 

“We can only hope that the other major manufacturers of insulin follow suit,” Murdock said. 

Federal lawmakers target insulin prices 

In 2021, the Senate Finance Committee unveiled a sweeping investigation of insulin prices. Drug companies in the last decade raised insulin list prices as pharmacy benefit managers commanded more lucrative rebates, the Senate Finance Committee investigation found. 

At the time. Sen. Chuck Grassley said drugmakers and drug-pricing middlemen known as pharmacy benefit managers created a “vicious cycle of price increases that have sent costs for patients and taxpayers through the roof.”

Drug pricing analysts said Lilly’s price cuts might be a sign that the insulin pricing dynamics are shifting. That could be good news for consumers, employers and government payers. But the uninsured and those with skimpy health insurance coverage who depend on insulin might be the biggest beneficiaries, said Antonio Ciaccia, CEO of 46brooklyn Research, a nonprofit that researches drug pricing.

“Any patient that’s been stuck paying full out of pocket, this is essentially prohibiting that game from continuing,” Ciaccia said. “That’s significant since we know so many patients have struggled with affordability.”

Ken Alltucker is on Twitter at @kalltucker, or can be emailed at alltuck@usatoday.com.

This article originally appeared on USA TODAY: Eli Lilly cuts insulin prices up to 70% amid federal pressure to lower costs