An estimated 26.9 million people of all ages (8.2% of the U.S. population) have been diagnosed with diabetes. A further 7.3 million adults ages 18 years or older (21.4 percent of adults with diabetes) are estimated to have diabetes but are undiagnosed. For people with diabetes, insulin is essential for them to live but in the US, insulin prices have been much higher than elsewhere in the world resulting in crippling costs for users, so much so that some people cannot afford to buy the drug.
One of the major achievements of Democrats and the Biden administration in passing the Inflation Reduction Act (IRA) at the end of last year was that it allowed Medicare to negotiate down the price of insulin for those over 65.
Effective January 1, 2023, out-of-pocket costs for insulin are capped at $35 per monthly prescription among Medicare Part D enrollees under the Inflation Reduction Act (IRA). A similar cap takes effect in Medicare Part B on July 1, 2023. An estimated 1.5 million Medicare beneficiaries who use insulin would have saved $734 million in Part D and $27 million in Part B if these caps had been in effect in 2020.
Thanks to the pressure exerted on prices by that move, one of the major manufacturers of the drug has announced that they will reduce the price of the drug for everyone.
High insulin prices have not earned any U.S. manufacturer many friends, with list prices increasing 54% from 2014 to 2019.
Most troublingly, an estimated 1.3 million uninsured people with diabetes and patients with inadequate insurance have resorted to rationing their insulin. Skipping doses because of high insulin prices has sometimes had tragic and even deadly consequences.
Part of the problem with the existing system is that some patients, especially if they’re uninsured or have high deductibles, end up paying the list price – which can mean spending $1,000 or more a month on insulin. This can be a crushing financial burden.
Lilly’s new $35 out-of-pocket cap means that privately insured patients and those without insurance requiring insulin will spend no more than that monthly for copays. Its 70% reduction in the list price of two popular name brand insulins, Humalog and Humulin, will bring some financial relief. And the company has also reduced its generic lispro’s list price to $25 a vial, down from $126.
Lilly has put pressure on its biggest competitors, Novo Nordisk and Sanofi, to follow suit.
These lower prices could also make Lilly’s insulins affordable to cash-paying patients. As a result, these insulins could be added to the list of drugs provided by pharmacies that are disrupting the U.S. prescription drug industry, like Mark Cuban’s Cost Plus Drug Co. and Blueberry Pharmacy. These companies provide low-cost drugs with transparent markups or through membership programs, typically without insurance.
It is things like this that significantly improve the lives of so many people.
Bernie Sanders has been railing about high insulin prices for years, pushing for the government to be able to negotiate insulin prices. There is no doubt that these moves are a result of public pressure created by his tireless efforts. But he is not stopping there. He wants to reduce the prices to $20 a vial. The man never gives up on his efforts to improve health care for everyone.
His ultimate goal is to expand Medicare to cover everyone, creating effectively a government-run universal health insurance plan that would get rid of the extortionist private, for-profit health insurance companies. Such a system would give the government much more power to negotiate health care costs across the board.
“There is no doubt that these moves are a result of public pressure created by Bernie Sanders’] tireless efforts.” Ah, no, we’ve been reliably informed that everything he does is mere sniping from the sidelines. Sorry.
Very happy to be proven wrong.
No Respect says
Nice assertion without evidence! It’s sad that you love the taste of Bernie’s boots so much that you feel the need to engage in such wishful thinking. Sanders didn’t write the Inflation Reduction Act that made this possible, and utterly failed to introduce amends to it. His only true contribution was his vote of approval, which he only offered after a lot of whining.
I swear to PeeZee, god of FtB, it’s pathetic how people of any political inclination are so eager to become loyal lapdogs of any authority figure, as long as it says something they agree with consistently enough.
Trust no one, support no one, especially those on your side. And while I’m at it, fuck Holms forever and ever, just because.
Rob Grigjanis says
Sure, if you don’t count Sanders hammering away repeatedly at the issue during his campaign for 2020. Maybe that escaped your attention.
What does simply pointing out someone’s demonstrable advocacy have to do with boot-licking, or being a loyal lapdog? Did Bernie piss in your corn flakes?
WMDKitty -- Survivor says
Why is Holms still commenting here after breaking the ONE RULE Mano set out for him?
#3 “fuck Holms forever and ever, just because.”
My first fan!
Because I didn’t break it. Remember, Mano reads posts even when not involved in a conversation. He didn’t step in presumably because he didn’t agree with you on that point.
Pierce R. Butler says
… 7.3 million adults ages 18 years or older (21.4 percent of adults)…
So the US has 34,112,150 adults in toto?
That explains a lot…
Mano Singham says
I have clarified the statistic.