Up until this year, insulin was notoriously expensive, with more than one million diabetic Americans forced to ration their medication because they couldn’t afford it, according to a study by the Harvard Medical School and Cambridge Health Alliance. Fortunately, there has been some welcome change, but employers may need to prepare for higher premiums.
The three biggest insulin drug manufacturers have recently capped their insulin prices, with Eli Lilly starting the trend in March after it limited its out-of-pocket cost of insulin to $35 per month. As part of the Inflation Reduction Act, pharmaceutical companies are already required to cap their insulin prices to $35 for Medicare Part D members, but Eli Lilly took it a step further, capping its price for all — regardless of whether they are insured. Just a few weeks later, drugmaker Novo Nordisk cut the prices of its fast-acting insulins by 70% to $72.34 per vial. Drugmaker Sanofi followed, dropping to $35 as well. Together, these three companies make up roughly 90% of the insulin market.
