Eli Lilly, one of three U.S. companies that produce insulin, the drug that millions of Americans with diabetes rely on to stay alive, announced on March 1 that it will cut the list price of some of its older insulins later this year andmirror the new Medicare $35 monthly out-of-pocket capfor consumers with private health insurance.
The move comes two months after the monthly Medicare cap took effect as part of the prescription drug provisions of theInflation Reduction Act of 2022.
Under that provision, Medicare enrollees who either have a stand-alone Part D prescription drug plan or who have a Medicare Advantage plan that covers medications will pay no more than $35 a month out of pocket for insulin covered by their plans.
Lilly’s announcement also comes on the heels of a call byPresident Joe Biden during his State of the Union addressfor insulin to be capped at $35 a month for everyone.
On March 14, another insulin producer, Novo Nordisk, announced it wouldcut the prices of some of its insulin by 75 percent, starting in 2024.
And on March 16, the third big insulin producer, Sanofi, announced that it willcut the price of its most popular insulin, Lantus, by 78 percent, also in 2024.
“There is definitely a sense that this is in response to the political pressure to lower prescription drug prices that has been building over the last several years,” says Leigh Purvis, AARP senior director of health care costs and access.
In its press release, Lilly officials say that 7 out of 10 Americans who use insulin don’t use Lilly’s products and they used their announcement to call for making insulin from all manufacturers more affordable across the board.
Here are the specific actions Eli Lilly will be taking:
Insulin prices historically high
“For people who are struggling to afford their insulin, this is good news, AARPs Purvis says, adding that the price cuts will be most meaningful for people who either are underinsured or uninsured.
