US Government Finally Getting a Handle On Out of Control Insulin Prices

For years, American individuals living with diabetes faced severe challenges due to the escalating cost of insulin, which saw a threefold increase from 2002 to 2013, surpassing the rate of inflation.

Recently, however, the 2022 Inflation Reduction Act, passed by the US Congress and endorsed by the Biden administration, has led to a positive shift. This legislation influenced the three dominant pharmaceutical giants in the insulin market—Novo Nordisk, Eli Lilly, and Sanofi—to reduce prices on their branded insulin products. This change is a direct response to the act’s provision that limits insulin expenses to $35 per month for Medicare beneficiaries.

Insulin remains a vital medication for countless individuals with diabetes, with no current substitutes. Despite being a long-established medication, it has only undergone minor advancements since its initial widespread introduction years ago.

In a related development, the 2021 American Rescue Plan Act was enacted, introducing a measure that compels major pharmaceutical companies to offer rebates to state Medicaid programs should their drug prices increase more rapidly than inflation. This regulation primarily affects cancer medications, but it also covers treatments for severe infections like meningitis and cytomegalovirus.