Drugmaker Eli Lilly will cap the out-of-pocket cost of its insulin at $35 a month, a move that could prompt other insulin makers in the U.S. to follow suit, NBC News reported Wednesday citing a statement from the company.
The change will take effect immediately and will put the drugmaker in line with a provision in the Biden administration’s Inflation Reduction Act, which last month imposed a $35 monthly cap on the out-of-pocket cost of insulin for seniors enrolled in Medicare.
The development comes as insulin makers continue to face pressure from members of Congress and advocacy groups to lower the cost of the lifesaving medication.
As noted by NBC, “Insulin costs in the U.S. are notoriously high compared to the costs in other countries; the Rand Corporation, a public policy think tank, estimated that in 2018, the average list price for one vial of insulin in the U.S. was $98.70.”
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“The cap automatically applies to people with private insurance. People without insurance will be eligible as long as they sign up for Eli Lilly’s copay assistance program,” the report stated.
That program began providing insulin to patients — regardless of their insurance statuses — for no more than $35 a month in 2020 because of the pandemic.
The cap applies to all of Eli Lilly’s insulin products, said Kelly Smith, a spokesperson for the company. In addition to the cost caps, the company will lower the list price for several of its products, including Humalog, this year, according to the report.
