HEALTH

Eli Lilly to cut insulin prices, cap costs at $35 for many people with diabetes

Mar 1, 2023, 7:16 AM | Updated: Aug 13, 2023, 7:59 pm

The glucometer, test strips, insulin against the backdrop of record results...

The glucometer, test strips, insulin against the backdrop of record results

(CNN) — Eli Lilly announced Wednesday a series of price cuts that would lower the price of the most commonly used forms of its insulin 70% and said it will automatically cap out-of-pocket insulin costs at $35 for people who have private insurance and use participating pharmacies.

Related reading: KSL In-Depth: A Costly Cure

Lilly says it will also expand its Insulin Value Program, which caps out-of-pocket costs at $35 or less per month for people who are uninsured.

The company says it will cut the list price of its nonbranded insulin to $25 a vial as of May 1, making it the lowest list-priced mealtime insulin available. Its current list price is $82.41 for a vial.

Lilly will also lower the list price of Humulin and its most commonly prescribed insulin, Humalog, in the fourth quarter of 2023. The current list price of a Humalog vial is $274.70, and the new list price will be $66.40. For people with commercial insurance who use participating pharmacies, the out-of-pocket costs will now be capped at $35.

Although insulin is relatively inexpensive to manufacture, the cost has been a problem for many Americans for years. At least 16.5% of people in the US who use it report rationing it because of cost.

The average price of insulin nearly tripled between 2002 and 2013, the American Diabetes Association says. GoodRx research shows that the trend has continued, with the average retail price of insulin rising 54% between 2014 and 2019.

Demand for insulin has grown significantly as diabetes has become the fastest-growing chronic disease in the world, a 2022 study found.

In the US alone, the number of adults with diabetes has doubled over the past 20 years, and more than 37.3 million people now have it, according to the US Centers for Disease Control and Prevention. Another 96 million Americans — 38% of the population — have prediabetes, a condition in which blood sugar levels are higher than normal but not high enough for a diagnosis of type 2 diabetes. This can often lead to diabetes.

People with diabetes rely on insulin because their bodies have stopped producing enough of this hormone or aren’t using it efficiently to convert food into energy.

When a person eats, their body breaks down food, mostly into sugar. This sugar enters the bloodstream, and that signals the pancreas to release insulin, which works like a key that allows the sugar to energize cells. But if diabetes keeps sugar in the bloodstream for too long, it can lead to serious problems like kidney disease, heart problems and blindness. In 2019, diabetes was the seventh leading cause of death in the US, according to the American Diabetes Association.

This year’s Inflation Reduction Act capped insulin costs for seniors who get their health coverage through Medicare Part D at $35 a month. Congressional Democrats pushed to extend that price cap to people covered by private insurance, but Republicans stripped that measure from the bill.

The US Food and Drug Administration’s approvals of generic insulin and biosimilars — drugs similar to original versions that can be made differently or with slightly different substances — have driven down the price at least somewhat, according to GoodRx.

Some states have taken matters into their own hands. Twenty-two states and the District of Columbia have price caps ranging from $25 to $100 for insulin as well as diabetes supplies and devices — but that’s only for people covered by insurance plans regulated by those states.

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

Lilly has been one of the biggest players in the US insulin market since it became the first company to commercialize the lifesaving drug 100 years ago. The company said that its price changes should make a difference, but more is needed to help all Americans with diabetes — 7 out of 10 don’t use the company’s insulin.

“We are calling on policymakers, employers, and others to join us in making insulin more affordable,” Ricks said.

Other companies have cut insulin costs over the years.

In 2019, Sanofi created the Insulin Valyou Savings Program, which charged patients $99 a month for insulin, regardless of income. In 2021, Novo Nordisk created a similar program called My$99Insulin.

Also that year, Novo Nordisk collaborated with Walmart to sell private-label analog insulin at a deep discount. Walmart said its ReliOn NovoLog vials and FlexPens save customers 58% to 75% off the cash price for branded insulin.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Health

Respiratory illnesses such as the flu, COVID-19, and RSV are on the rise across the U.S....

Michelle Lee

Simple ways to keep respiratory illnesses away

Let’s Get Moving Host Maria Shilaos spoke with Nicole Henry with CVS to learn what we can do to protect ourselves from respiratory illnesses.

1 day ago

Kaysville City officials confirmed that the Weber Basin Water Conservancy District had added water ...

Simone Seikaly

Kaysville City tells residents why water smells like chlorine

Weber officials recently added water from groundwater wells, which, because of extra processing, created the chlorine smell.

3 days ago

wegovy, one of many weight loss drugs...

Allessandra Harris Gurr

Popular weight loss drugs may play a factor in vision loss, review shows

Ingredients in popular weight loss drugs like Ozempic, Wegovy, Zepbound and Mounjaro may play a role in vision complications, such as eye stroke.

4 days ago

The Weber County Animal Shelter reported it had to euthanize at least 18 dogs after a canine parvov...

Simone Seikaly

Parvovirus outbreak leads to euthanizations at Weber County Animal Services

The Weber County Animal Shelter said it had to euthanize at least 18 dogs that had been vaccinated but contracted parvovirus anyway.

6 days ago

This image shows a chicken coop and garden at the home of Sarah Penny in Knoxville, Tenn., in May 2...

Associated Press

Soaring egg prices are piquing interest in backyard chickens

Thinking about backyard chickens as egg prices soar? Think hard, especially in light of the bird flu outbreak.

6 days ago

A doctor uses a hand-held Doppler probe on a pregnant woman to measure the heartbeat of the fetus o...

Don Brinkerhoff

AI model could help predict dangers in unborn babies

Researchers have developed a new AI model that may help doctors assess the risk a fetus has for serious complications like stillbirth.

7 days ago

Sponsored Articles

Full speed through the snow. A man on skis is pulled by his through the snow at full gallop Skijori...

Bear Lake Convention and Visitors Bureau

Get ready for an unforgettable skijoring adventure in Bear Lake!

“Skijoring the Bear” takes place this year on February 21-22 in Garden City, Utah.

the bedroom in a geodesic dome shows the night sky...

Clear Sky Resorts Bryce Canyon

Your front row to an extraordinary cosmos show

As America's first glass dome stargazing resort, Clear Sky Resorts Bryce Canyon is one of the world’s most unique and spectacular places to stay.

2 people huddled up in a blanket and warm clothes sipping hot chocolate...

Bear Lake Convention & Visitors Bureau

The best ways to spend your Christmas vacation in Bear Lake

If you're dreaming of a white Christmas this year, Bear Lake should definitely be on your radar. Read this guide for more!

big crowd of people under holiday lights in an outdoor market...

Western Nut

Our favorite family Christmas activities in Utah

We gathered up a list of our favorite activities, movies, and treats to try this holiday season that the whole family can enjoy.

an IT tech looks at a laptop in front of a server network...

Comcast Business

Tips to protect yourself from phishing attacks

Check out this resource from Comcast Business to learn more about phishing attacks and how to protect yourself from becoming a victim of one.

A surprise gift, wrapped and ready to bring holiday cheer! Whether for Christmas, a birthday, or an...

Western Nut

10 Holiday Gift Ideas to cover everyone on your list

This guide is for you if you need holiday gift ideas that will make a lasting impression. 

Eli Lilly to cut insulin prices, cap costs at $35 for many people with diabetes