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."
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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.
Biden reacted to Eli Lilly's announcement by calling it a "big deal" adding "it's time for other manufacturers to follow."
"Today, Eli Lilly, the largest manufacturer of insulin in the United States, announced that they are lowering their prices, capping what patients pay out of pocket for the drug maker’s insulin products at $35," President Biden said. "For far too long, American families have been crushed by drug costs many times higher than what people in other countries are charged for the same prescriptions. Insulin costs less than $10 to make, but Americans are sometimes forced to pay over $300 for it. It’s flat wrong."
