March 07, 2023

Insulin Prices Cut for More Patients as Eli Lilly Caves to Pressure

Drug corporation Eli Lilly announced Wednesday that it will cap out-of-pocket patient costs for its two most popular insulin drugs, Humalog and Humulin, at $35 a month. Patients with private insurance and who use participating pharmacies will pay the new, lower prices.

Alliance members have been at the forefront of lowering the price of drugs like insulin for years, adding to the pressure on the company to act. The Inflation Reduction Act, signed into law by President Biden on August 16, 2022, had already capped insulin copays at $35 per month for Medicare beneficiaries, adding to the pressure to cut prices for other consumers.

The price cuts will not take effect until October, giving the drugmaker seven more months of profits from high priced insulin. Also, since Lilly caps out-of-pocket costs to patients but not necessarily the prices charged to insurance companies, their plan could result in cost-shifting and higher insurance premiums.

“All Americans who need insulin should be able to get it at an affordable price,” said Richard Fiesta, Executive Director of the Alliance. “However, we should not have to rely on voluntary actions by wealthy corporations to make lower drug prices a reality. Our activism needs to remain vocal and strong. Congress must build on the Inflation Reduction Act to lower drug prices for all Americans.”