Life-saving insulin just got more accessible for millions of families

In a press release issued Wednesday, drugmaker Eli Lilly announced that it will slash list prices of several of its life-saving insulin drugs by 70%. The company is also expanding its existing program that caps patient out-of-pocket costs for insulin at $35 or less per month. 

Insulin, which is used in diabetes management, and which more than 7 million American adults and children need to keep them alive, may now be more accessible for many. Current list prices for some insulin formulations can be more than $300 per vial. For those with high-deductible insurance plans, out-of-pocket costs for insulin can be well over $1,000 per month (though many pay significantly less), forcing them to ration their supply. Statistics show that 16.5% of American adults (about 1.3 million) and nearly 25% of people worldwide who rely on insulin will ration it due to high cost, which can lead to serious health consequences or even death.

Pressure to make insulin more affordable

The move comes after increased pressure on drug companies from diabetes advocates, states and the federal government to cut back on rising insulin costs. “This decision for affordable insulin shows the power of grassroots advocacy and organizing,” said Elizabeth Pfiester, executive director of T1International, an advocacy group for people with type 1 diabetes, in a statement. “The T1International community has been taking action and asking insulin manufacturers to put patients over profits for years.” President Biden has championed the Lilly announcement, calling it “a big deal,” and noting “it’s time for other manufacturers to follow.” 

The price of insulin has been increasing. Though a vial of insulin costs less than $10 to manufacture, The New York Times reports that Lilly has raised the list price on its most widely used insulin product, Humalog, by more than 1,000% over the past three decades. The two other primary insulin manufacturers, Sanofi and Novo Nordisk, have also been accused of raising prices to increase profits. Lilly’s announcement may apply pressure on other manufacturers to also make insulin products more affordable. 

The insulin price cap is a step toward change

The newly announced changes are a step in the right direction, but advocates call for more regulation at the federal level. “This is good news for some, but we need regulation to make sure that the companies can’t change their mind again and decide to raise the price,” Pfeister tells The Times.

As for what the insulin price cap may mean for families who rely on insulin? Most Americans using insulin may not notice a big difference in terms of money back in their pocket. The majority today rarely pay exorbitant prices for the insulin they rely on, thanks to existing discount programs and rebates, as well as several state-sponsored programs and a new Medicare initiative that caps cost-sharing at $35. Additionally, most Americans aren’t using Lilly brands, which the company readily admits, though the expanded $35 price cap will now be easier to access. The list price changes also only apply to Lilly’s older insulin products, The Times reports, and while one product’s price cut will be effective May 1, the price cuts on Humalog won’t take effect until the last three months of 2023.

Related: Covid infection linked to an increased risk of diabetes in kids, says CDC

The silver lining is that other companies may now also feel pressured to cut list prices of insulin, in order to make more modern versions of the drug more affordable for the millions who need it, though no actions to do so have yet been announced.  

“We are driving for change in repricing older insulins, but we know that 7 out of 10 Americans don’t use Lilly insulin. We are calling on policymakers, employers and others to join us in making insulin more affordable,” said David A. Ricks, Eli Lilly’s chair and CEO. 

The new insulin price cap for Eli Lilly insulin will automatically apply at most pharmacies for those with insurance—no additional action needed. Otherwise, a coupon will be available for patients to use at the remaining 15% of pharmacies where the electronic system does not allow for the automatic price drop, Ricks said. Those without insurance can download the Lilly Insulin Value Program savings card to receive Lilly insulins for $35 per month.