Drugmaker Eli Lilly announced Wednesday that it plans to cut insulin prices and cap out-of-pocket expenses at $35 a month.
Eli Lilly said once the cuts take effect, it would result in price reductions of 70%.
The company also announced it would cut the price of its nonbranded insulin to $25 per vial.
"While the current health care system provides access to insulin for most people with diabetes, it still does not provide affordable insulin for everyone and that needs to change," said David A. Ricks, Eli Lilly CEO. "The aggressive price cuts we're announcing today should make a real difference for Americans with diabetes. Because these price cuts will take time for the insurance and pharmacy system to implement, we are taking the additional step to immediately cap out-of-pocket costs for patients who use Lilly insulin and are not covered by the recent Medicare Part D cap."
The announcement comes amid a political battle to cap the price of insulin. Congress passed the Inflation Reduction Act, which included in a provision that capped insulin prices for Medicare recipients at $35.
President Joe Biden, however, said at last month’s State of the Union address that he wanted a universal price cap for insulin.
According to the Food and Drug Administration, insulin helps to take the sugar in the blood to other parts of the body. The FDA said that diabetes affects how the body makes and uses insulin.
The Centers for Disease Control and Prevention estimates 37.3 million Americans have diabetes, which accounts for 11.3% of the population.
Eli Lilly's announcement comes as financial relief to many, including Kyle Harrington, who lives in the Valley.
“I think it’s huge. I think it’s going to help a lot of people,” said Harrington.
Harrington has Type 1 diabetes.
“I was diagnosed at the age of eight,” he added.
Every day after that, for the last 29 years, he’s needed insulin to live because his body doesn’t produce enough on its own.
“Right here is an insulin pump pod. That holds 150 units of insulin and lasts for three days. And then on the other side right here I have a glucose monitor,” he told ABC15.
Harrington says, at times, he’s dropped hundreds of dollars on insulin per month.
“There was a time when I was rationing my insulin to where I could afford to keep gas in my car to go to work because I couldn’t afford to buy the insulin and keep gas in the car,” said Harrington.
ABC15’s Health Insider Dr. Shad Marvasti, says Eli Lilly’s move to slash insulin prices up to 70% and cap insulin costs at $35 a month will make a huge difference, across the nation.
“We’ve got millions of people around the country and hundreds of thousands in Arizona alone who are diabetic and dependent on insulin,” said Dr. Marvasti.
Dr. Marvasti adds that lowering the cost of insulin will help prevent people from having to choose between their health or paying their bills.
“I do hope that this is the beginning of more and more relief in terms of the price of insulin so that we can have more accessibility to people now,” said Dr. Marvasti.
As soon as pharmacies and insurers can catch up with these developments, you'll see the $35 monthly cap for those with insurance.
Those without can still get the same price through savings cards.
“Some people will be able to sleep good at night because they know that they can afford their medication,” Harrington told ABC15.
