Lawmakers applaud $35 insulin cap, now in effect, after drugmakers slashed prices
Sens. Tim Kaine and Mark R. Warner, who both have championed to lower the cost of prescription drugs, applauded Sanofi, Novo Nordisk and Eli Lilly – the three major insulin manufacturers – for slashing prices, effective Jan. 1, 2024.
Long-awaited reductions in the cost of insulin went into effect on Monday, bringing relief for Americans with diabetes who had seen the cost of the drug skyrocket over the last several years.
Three leading manufacturers – Eli Lilly, Novo Nordisk and Sanofi – have capped the monthly price at $35. Lawmakers who advocated for price caps recently applauded the move.
“When we capped insulin at $35 a month for Medicare patients as part of the Inflation Reduction Act, we put pressure on big pharmaceutical companies to do the same, and we are seeing the impact,” said Sen. Mark Warner, D-Va., a member of the Senate Health, Education, Labor and Pensions Committee, earlier this week. “As we start the new year, millions of Americans will pay less for the medication they need.”
One in four people with private health insurance paid more than $35 a month for their insulin in 2018, according to the Kaiser Family Foundation, which also estimates than more than 5% of users paid more than $150 a month for insulin. Diabetics account for one of every four dollars spent on health care in the United States, according to the American Diabetes Association.
The Inflation Reduction Act set an out-of-pocket price cap for insulin at $35 a month for Americans covered by Medicare. It also required drug companies to pay a rebate to the government if drug prices rise faster than inflation, spurring manufacturers to make similar changes to the cost of insulin for other patients who aren’t on Medicare.
Sanofi, Novo Nordisk and Eli Lilly, which comprise 90% of the U.S. market for insulin, each announced it would cut the cost of their products by at least 70%:
- Eli Lilly was the first to institute a $35 maximum for patients with private insurance at some pharmacies, and uninsured patients can receive the same price, effective in 2023.
- Novo Nordisk launched its MyInsulinRx program that provides a 30-day supply of insulin for $35 to eligible patients, including those without insurance, effective Jan. 1, 2024.
- Sanofi capped monthly out-of-pocket costs at $35 for patients with private insurance for its most popular product, Lantus, effective Jan. 1, 2024. People without insurance also can get it at that price.
Related: Why does insulin cost so much? Big Pharma isn’t the only player driving prices
In addition, Amazon Pharmacy introduced automatic coupons to provide instant savings on more than 15 insulin and diabetes care brands. “It’s not easy to actually figure out how to get that low cost, even though manufacturers and Congress have moved toward that direction,” said Vin Gupta, Amazon Pharmacy’s chief medical officer. “Transparency here is really key.”
“I appreciate Eli Lilly, Novo Nordisk and Sanofi’s decisions to step up to the plate with these $35 monthly insulin caps,” said Sen. Tim Kaine this week. “Making prescription drugs more affordable is one of my top priorities on the Senate Health, Education, Labor and Pensions Committee.”