Eli Lilly cuts insulin prices
People with diabetes who pay thousands of dollars for life-saving insulin each year will be able to keep more money in their wallet after Eli Lilly on Wednesday said it will cut insulin prices and cap out-of-pocket costs at $35 a month, or $420 a year.
This move from the largest insulin manufacturer in the U.S. comes after the federal government recently capped the cost of insulin for seniors on Medicare at $35 per month.
“For far too long, American families have been crushed by drug costs many times higher than what people in other countries are charged for the same prescriptions,” President Biden said in a statement following Eli Lilly’s announcement. “Insulin costs less than $10 to make, but Americans are sometimes forced to pay over $300 for it. It’s flat wrong.”
Biden last year signed the law to cap insulin at $35 for seniors, and he called on pharma companies to bring prices down for everyone on their own.
“Today, Eli Lilly did that,” the president said. “It’s a big deal, and it’s time for other manufacturers to follow.”
Eli Lilly is slashing prices by 70% for its most commonly prescribed insulins, and is expanding its Insulin Value Program that caps patient out-of-pocket costs at $35 or less per month.
“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,” said David Ricks, Eli Lilly’s chair and CEO. “The aggressive price cuts we’re announcing today should make a real difference for Americans with diabetes.”
Last week, U.S. Sen. Ed Markey visited Boston’s Codman Square Health Center to tout the cap on insulin costs as part of the Inflation Reduction Act, and he called for affordable insulin for all.
“Eli Lilly’s cost cap shows us that pharma can sell vital medicines at an affordable price,” Markey tweeted. “This fight isn’t over.”
U.S. Sen. Elizabeth Warren tweeted, “Eli Lilly execs woke up and decided to stop charging over $35/month for insulin. That’s all well and good— but lifesaving care shouldn’t rely on corporate whims. I’ll keep fighting to cap insulin prices for all Americans and ensure health care is treated like a basic human right.”
The American Diabetes Association applauded Eli Lilly, and urged other insulin manufacturers to do the same.
Charles “Chuck” Henderson, CEO of the American Diabetes Association, said, “While we have been able to help achieve significant progress on the issue of insulin affordability, including Medicare’s new out-of-pocket cost cap on insulin, state copay caps, and patient assistance developments from insulin manufacturers, we know that our work is not done.”