Drugmaker Eli Lilly & Co. announced on Wednesday that it will reduce the prices of its most commonly prescribed insulins by 70% and cap monthly out-of-pocket costs at $35 at select retail pharmacies for individuals with private insurance.
Effective May 1, Lilly will list its Lispro injection at $25 per vial and will cut the price of its Humalog and Humulin injections by 70% starting in the fourth quarter.
This announcement follows increased federal pressure to lower insulin costs. The Inflation Reduction Act set a $35 monthly cap on insulin prices for Medicare beneficiaries but did not extend this protection to people with private insurance or those without coverage.
In President Joe Biden’s State of the Union address, he urged Congress to cap insulin prices at $35 a month for everyone. Lilly expressed support for extending the price cap to all Americans at that time. On Wednesday, Biden praised Lilly’s decision and urged other drugmakers to follow their lead.
Lilly will immediately cap out-of-pocket costs at $35 per month at certain retail pharmacies for people with private insurance.
Additionally, the company offers a program providing insulin to uninsured individuals for $35 a month. Uninsured individuals can access this program by visiting Lilly’s website and downloading a discount card.
Lilly CEO David Ricks stated that seven out of ten Americans do not use the company’s insulin and called on the government and employers to help make insulin more affordable. Diabetes is a prevalent condition affecting millions of Americans.
“So that’s why this issue I think has been such a hot topic,” Ricks said in an interview. “And why insulin has become such a pivotal issue in terms of drug affordability.”
According to the American Diabetes Association, about 40% of people with diabetes have private insurance, and 5% are uninsured. The Kaiser Family Foundation reports that one in five people with diabetes who have private insurance pay more than $35 per month for insulin.
Last summer, Democrats in Congress attempted to cap insulin costs at $35 per month for those with private insurance, but Senate Republicans blocked the measure.
Rep. Cathy Rodgers of Washington, the Republican chair of the House Energy and Commerce Committee, dismissed Biden’s February call to cap prices for everyone as “socialist” and a “federal mandate.”
