Eli Lilly to cut insulin prices and cap out-of-pocket costs at $35

Eli Lilly plans to cut prices on its most commonly prescribed insulin products and will also cap customers’ out-of-pocket costs at $35 a month for those with commercial insurance who use its insulin. 

The change comes as Eli Lilly and other insulin manufacturers face ongoing criticism for their prices, which have pushed more people with diabetes to ration insulin or reduce their use of the medication. Insulin rationing can lead to illness and death, while some groups contend that unaffordable insulin may constitute a human rights abuse.

About 3 in 10 diabetics in the U.S. rely on insulin from Eli Lilly, one of three drug companies, along with Novo Nordisk and Sanofi, that control the market for the drug. Since introducing their analog insulin products more than two decades ago, the three drugmakers have sharply raised prices for the medications, which control blood sugar more effectively than so-called human insulin.

Eli Lilly on Wednesday said it will cut the list price of its Humalog 100 units/mL1, its most commonly prescribed insulin, by 70%. The price cut will take effect during the fourth quarter of 2023, the company said in a statement. 

The drugmaker said it will also cut the list price of its non-branded insulin, called Insulin Lispro Injection 100 units/mL, to $25 a vial, which will go into effect on May 1. That amounts to a lower price than a vial of Humalog in 1999, the company noted.

“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 CEO David A. Ricks in a statement.

Eli Lilly also said it will cap out-of-pocket costs at $35 at participating retail pharmacies for people with insurance who are prescribed the company’s insulin. People without insurance can download an Insulin Value Program savings card to buy Lilly insulin products for $35 a month, it added.

The price cuts come after the Biden administration’s Inflation Reduction Act capped the price of insulin at $35 a month for enrollees in Medicare, the health insurance plan for people who are 65 or older.