Eli Lilly to cut insulin prices up to 70% amid federal pressure to lower costs
Eli Lilly and Co. said it will cut prices of its most commonly prescribed insulins up to 70% and expand a program that limits out-of-pocket monthly costs for some consumers.
The Indianapolis drugmaker's price cuts and discounts for insulin come as federal and state lawmakers and patient advocates pressure drug companies and health insurers to improve affordability for the lifesaving medication used by millions of Americans.
“The aggressive price cuts we’re announcing today should make a real difference for Americans with diabetes," said Lilly Chair and CEO David Ricks.
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Eli Lilly discounts Humalog and Humulin insulin
The drugmaker will cut list prices by 70% for the fast-acting injectable Humalog, which is the company's most commonly prescribed insulin. Lilly also will discount an older fast-acting drug, Humulin.
The list price for Humalog U-100, 10 mL vial will drop from $274.70 to $66.40.
The list price for Humulin U-100, 10 mL vials will drop from $148.70 to $44.61.
The price changes will take effect between Oct. 1 and Dec. 31.
Lilly also will reduce the price of its nonbranded, fast-acting insulin to $25 a vial, effective May 1.
On April 1, Lilly also will launch a biosimilar to Sanofi's Lantus that will be a less expensive version of the long-acting insulin. The new drug, Rezvoglar, will be interchangeable with Lantus, which means a pharmacist can substitute the drug without a new prescription. Rezvoglar will cost $92 per five-pack of KwikPens, a 78% discount to Lantus, Lilly said.
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Lilly caps out-of-pocket costs for privately insured patients at $35 a month
Lilly said in a news release that it will cap out-of-pocket costs for privately insured consumers at $35 a month at the "majority of retail pharmacies." Company officials said about 85% of national and local pharmacies will honor the $35 price cap, but the company did not provide a list. Consumers are encouraged to call their local pharmacy and ask about the program.
For those without insurance, the drugmaker offers a program savings card that will cap Lilly insulin at $35 a month. Uninsured consumers can get more information and download the discount card at InsulinAffordability.com.
The price might sound familiar to older Americans on Medicare. The federal Inflation Reduction Act caps insulin costs at $35 a month for people on Part D plans. Last month, President Joe Biden called on Congress to extend that out-of-pocket cap to younger Americans who directly purchase their own health insurance or get coverage through an employer.
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Why is Lilly cutting insulin prices?
A study last year found more than 1.3 million American adults skipped, delayed buying or rationed doses of insulin because of the cost of the medication.
Ricks acknowledged that his company and others must make insulin less expensive for people with diabetes who can't afford the medication.
But he added that other stakeholders must help drive down prices. Employers should share cost savings from drug rebates with their workers, and pharmacies should carry low-cost insulins and make people aware of these options, he said.
“We are driving for change in repricing older insulins, but we know that 7 out of 10 Americans don’t use Lilly insulin," Ricks said. "We are calling on policymakers, employers and others to join us in making insulin more affordable.”
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With 8.4 million Americans needing insulin, advocates hope other drugmakers will follow suit
Insulin is needed by all people with Type 1 and some with Type 2 diabetes.
"Insulin is one of those medicines, particularly for those with Type 1 diabetes, that's in the must-have category," said Dr. Robert Lash, chief medical officer of the Endocrine Society. "If you don't have it, you die."
Some with Type 2 diabetes also need insulin. While skipping a dose might not be life-threatening, these people often need insulin to keep their glucose under control and avoid complications, Lash said.
The American Diabetes Association estimates about 8.4 million Americans rely on insulin.
Lisa Murdock, chief advocacy officer for for American Diabetes Association, said reducing out-of-pocket expenses for the drug is a crucial step. As drug companies have raised the price of insulin, insured consumers have absorbed some of those costs in the form of higher co-payments and deductibles.
Cutting insulin list prices, capping co-payments for the insured and extending the $35 cap to the uninsured will make the medication more affordable for people who use Lilly's products.
"We can only hope that the other major manufacturers of insulin follow suit," Murdock said.
Federal lawmakers target insulin prices
In 2021, the Senate Finance Committee unveiled a sweeping investigation of insulin prices. Drug companies in the past decade raised insulin list prices as pharmacy benefit managers commanded more lucrative rebates, the Senate Finance Committee investigation found.
At the time, Republican Sen. Chuck Grassley of Iowa said drugmakers and drug-pricing middlemen known as pharmacy benefit managers created a "vicious cycle of price increases that have sent costs for patients and taxpayers through the roof."
Drug pricing analysts said Lilly's price cuts might be a sign that the insulin pricing dynamics are shifting. That could be good news for consumers, employers and government payers. But the uninsured and those with skimpy health insurance coverage who depend on insulin might be the biggest beneficiaries, said Antonio Ciaccia, CEO of 46brooklyn Research, a nonprofit that researches drug pricing.
"Any patient that's been stuck paying full out of pocket, this is essentially prohibiting that game from continuing," Ciaccia said. "That's significant, since we know so many patients have struggled with affordability."
Ken Alltucker is on Twitter at @kalltucker, or can be emailed at alltuck@usatoday.com.
This article originally appeared on USA TODAY: Eli Lilly insulin price cut: Drugmaker caps out-of-pocket costs
