Some Insulin Could be Getting a Major Price Cut

Some insulin could be getting a major price cut.

More than 7 million Americans depend on the medication. And for more than a million, it’s life-saving. However, one study found that a quarter of insulin users have had to ration or skip taking it because of cost. The average cost of producing one insulin dose is less than $10 — but companies reportedly sell it for upwards of $200. The price of the medication has also jumped 600% over the last 20 years. There are three major companies that control the insulin market in the US: Eli Lilly, Novo Nordisk, and Sanofi. They essentially get to set the prices they want. Now, Eli Lilly has decided to cut some of their prices as soon as this year.

How much are we talking?

$35 a month maximum for out-of-pocket costs. This year, the Indianapolis-based pharma company is cutting its price on Humalog — its most commonly prescribed insulin product — by 70%. Its non-brand insulin, Lispro, will be $25 a vial at the beginning of May. But before everyone hails Eli Lilly as a hero, the price cuts only apply to some of the company’s older products. Eli Lilly said it wants to help Americans navigate the US’s “complex health care system.” The move also comes amid growing pressure from lawmakers and activists to make insulin more accessible.

Just last month, President Biden asked Congress to pass a measure to cap insulin prices at $35 nationwide. When he signed the Inflation Reduction Act last year, the fine print included the same monthly cap on out-of-pocket insulin costs for seniors enrolled in Medicare. A cap for privately insured people didn't make it into the act after Republicans voted it down. Biden called Eli Lilly’s move “a big deal” and pushed other companies to follow suit. The American Diabetes Association applauded Eli Lilly’s move.

The researchers who first discovered the medication said “insulin belongs to the world” and sold it for $1. But decades later, many are struggling to access the life or death medication amid inflated pricing.