Millions with Diabetes will benefit from Insulin price cap 

Eli Lilly announced last week that they would cut the price of insulin, with a $35 a month cap for out-of-pocket costs for those with or without insurance. President Biden responded on Twitter, “It’s a big deal, and it’s time for other manufacturers to follow.” 

Why is this a “big deal?”

More than 8 million people in the US take insulin.   However, it is one of the most costly drugs on the market today.  Prices in the US are around 10 times higher than in other countries.  For some patients who need insulin, the cost of medication can take up to 40% of their net income. 

There’s a good chance that you know someone with diabetes.  

• Approximately 37 million people (about 1 in 10) in the United States have diabetes
• In addition, 96 million American adults (more than 1 in 3) have pre-diabetes.
• Could you have Pre-Diabetes, Take the test?

The price of insulin has skyrocketed, especially over the past ten years.  A fast-acting type of insulin, Humalog, debuted in 1996 at $21 a vial and now costs $274. Humalog will now be capped at $35 and in May, Lilly will offer a different brand for $25 a vial down from the current price of $82. 

Why is insulin so important for people with diabetes?

Our bodies break food down into glucose (a type of sugar) which is then released into the blood.   Insulin is a hormone produced in the pancreas that regulates this sugar level in the blood.  Insulin acts like a gatekeeper to let blood sugar into the cells of the body to be used for energy.

With diabetes, your body doesn’t make enough insulin or can’t use it as well as it should. When there isn’t enough insulin or cells stop responding to insulin, too much blood sugar stays in your bloodstream. Over time, that can cause serious health problems.

To keep their glucose levels stable, some people with diabetes need insulin, usually on a daily basis.  

Why is insulin so expensive?

There are several reasons but the biggest is that only three companies control 90% of the global insulin market. The “big three” include Eli Lilly, Novo Nordisk and Sanofi. China and India have their own insulin companies that help keep their costs down.  

Future Prospects

• More companies are needed in the USA to keep prices down. The state of California announced that they are in the process of making their own insulin.
• Civica, a nonprofit drugmaker based in Utah, for example, says it plans to sell a biosimilar insulin for $30 per vial by 2024. 
• The Mark Cuban Cost Plus Drug Co. announced in December a plan to sell insulin at low cost.
• California says it’s ready to start to manufacture their own brand of insulin as well as generics of other high-cost prescription drugs. 

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