Insulin manufacturers Eli Lilly, Novo Nordisk and Sanofi have officially lowered the cost of their insulin products to $35 per month for most patients.
The price reduction came in 2023 for Eli Lilly products and was made effective on Jan. 1 for Novo Nordisk and Sanofi products.
The reduction is in line with provisions from the Inflation Reduction Act, which set an out-of-pocket price cap for insulin at $35 per month for Americans covered by Medicare, and 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.
According to a Kaiser Family Foundation analysis, one in four individuals with private health insurance paid more than $35 per month for their insulin in 2018. The Kaiser Family Foundation also estimates than more than 5 percent of insulin users pay more than $150 per month for insulin.
The American Diabetes Association found that diabetics account for $1 of every $4 spent on health care in the United States.
U.S. Sens. Mark R. Warner and Tim Kaine each released statements in response to the price reduction.
“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,” Warner said. “As we start the New Year, millions of Americans are will pay less for the medication they need. As we move into 2024, the Senate Finance Committee will keep working on measures to lower drug prices and improve transparency for all Americans.”
“I appreciate Eli Lilly, Novo Nordisk and Sanofi’s decisions to step up to the plate with these $35 monthly insulin caps,” Kaine said. “No Virginian should have to ration the medication they need to stay alive. That’s why I was proud to vote for the Inflation Reduction Act, which passed in the Senate by one vote, to push drug manufacturers to lower the cost of lifesaving medications, including insulin. Making prescription drugs more affordable is one of my top priorities on the Senate Health, Education, Labor and Pensions Committee, and I look forward to building on this progress.”
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Rebecca Barnabi
