Insulin cost have been dropped by Inflation Reduction Act for medications

Eli Lilly’s decision to set the out-of-pocket cost of their insulin at $35 per month may inspire other US insulin manufacturers to do the same. The modification brings Eli Lilly into compliance with an Inflation Reduction Act clause that, as of January, set a $35 monthly restriction on the price of insulin for Medicare-eligible seniors. In a tweet, President Joseph Biden applauded the action and urged other pharmaceutical companies to reduce the cost of insulin.

The American Diabetes Association applauded Eli Lilly’s decision to lower the cost of insulin, despite pressure from members of Congress and advocacy groups. Insulin costs in the U.S. are notoriously high compared to other countries, with the average list price for one vial of insulin in 2018 being $98.70. Eli Lilly CEO David Ricks said patients should have a consistent and lower-cost experience at the pharmacy counter.

Eli Lilly’s copay assistance program provides insulin to patients for no more than $35 a month, with the cap automatically applying to those with private insurance. Kelly Smith, a spokesperson for the company, explains that the cap applies to all of Eli Lilly’s insulin products and lowers the list price for several of its products, including Humalog, this year.

The Inflation Reduction Act created a split scenario in the United States where seniors benefited from a $35 out-of-pocket monthly maximum while persons with private insurance and the uninsured did not.This was due to conversations between the company and members of Congress about the cost of the medication (Lovelace, 2023).