Key Takeaways

The announcement comes amidst ongoing criticism against the corporate price gouging of insulin, a lifesaving drug that helps people with diabetes to regulate their blood sugar.

According to the company, the Humalog list price will be reduced to roughly $160 for a five-pack of insulin pens, down from $530.40. Its non-branded Insulin Lispro Injection will also drop from $82.41 to $25 per vial, making it the lowest-priced mealtime insulin on the market.

In April, Lilly will launch anew product, called Rezvoglar (insulin glargine-aglr). The basal insulin is a biosimilar copycat to Sanofi’s Lantus (insulin glargine). Lilly set its list price at $92 for a five-pack—78% less than Sanofi’s version.

What Does Insulin Cost and What’s Behind the Skyrocketing Prices?

People with Private Insurance and the Uninsured Could Benefit the Most

With Lilly’s price cuts, people with private insurance are the most likely to benefit from the out-of-pocket payment caps.

However, not everyone’s out-of-pocket costs will go down—those with comprehensive commercial insurance plans may already spend less than $35 per prescription on their insulin. People with high deductible health plans are more likely to see a reduction in their insulin cost burden before they hit their deductible.

People with diabetes who are uninsured can receive insulin for $35 per month through Lilly’s existing savings program. But that benefit is a drop in the bucket for the overall cost of diabetes care for uninsured people, saidAnna Sinaiko, PhD, assistant professor of health economics and policy at the Harvard School of Public Health.

Notably, Lilly’s changes cover only older insulin products so far. People who opt for more recent medications may not see the benefits of price cuts, according toMark Pauly, PhD,a professor of economics and health care management at the University of Pennsylvania.

“If Lilly came out with a version of insulin that was much more convenient to use… they probably would not introduce that at a bargain basement price,” Pauly told Verywell.

Walmart Is Offering a More Affordable Brand of Insulin

A Bow to Political and Competitive Pressure

But Pauly said the move was a “response to political pressure,” given the Biden administration’songoing effortsto further bring down the cost of insulin nationwide.

The so-called “big three” insulin-makers—Eli Lilly, Novo Nordisk, and Sanofi—make up some 90% of the U.S. insulin market.Sanofi followed the Medicare part D plan in 2021, capping a month’s supply of insulin at $35, down from $99. In 2020,Novo Nordisk offereda $99 cash card program and 50% price reductions on some branded products.

“Maybe it wasn’t totally out of the goodness of their heart that Lilly cut the price,” Pauly said.  “They were going to have to cut it anyway to meet competition, we assume, and this is a way for them to get a gold star for being competitive.”

While Lilly’s price cut is a step in the right direction, Sinaiko said, making diabetes care affordable will take more work.

“This $35 cap is a start to making diabetes care more affordable. But people with diabetes often take other medications or have other diabetes-related supplies that they need to buy that are also expensive,” Sinaiko said. “We need policy to address those costs as well.”

Type 1 vs. Type 2 Diabetes: What Are the Differences?

What This Means For YouIf you use insulin products from Eli Lilly, talk with your health insurance provider for information about how the change in drug prices may impact you.

What This Means For You

If you use insulin products from Eli Lilly, talk with your health insurance provider for information about how the change in drug prices may impact you.

5 SourcesVerywell Health uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.Hernandez I, San-Juan-Rodriguez A, Good CB, Gellad WF.Changes in list prices, net prices, and discounts for branded drugs in the US, 2007-2018.JAMA. 2020;323(9):854-862. doi:10.1001/jama.2020.1012Rajkumar SV.The high cost of insulin in the United States: An urgent call to action.Mayo Clinic Proceedings. 2020;95(1):22-28. doi:10.1016/j.mayocp.2019.11.013National Center for Health Statistics.Health insurance coverage: Early release of estimates from the National Health Interview Survey, January–June 2022.Gaffney A, Himmelstein DU, Woolhandler S.Prevalence and correlates of patient rationing of insulin in the United States: A national survey.Ann Intern Med.2022;175:1623-1626. doi:10.7326/M22-2477Knox R.Insulin insulated: Barriers to competition and affordability in the United States insulin market.Journal of Law and the Biosciences. 2020;7(1). doi:10.1093/jlb/lsaa061

5 Sources

Verywell Health uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.Hernandez I, San-Juan-Rodriguez A, Good CB, Gellad WF.Changes in list prices, net prices, and discounts for branded drugs in the US, 2007-2018.JAMA. 2020;323(9):854-862. doi:10.1001/jama.2020.1012Rajkumar SV.The high cost of insulin in the United States: An urgent call to action.Mayo Clinic Proceedings. 2020;95(1):22-28. doi:10.1016/j.mayocp.2019.11.013National Center for Health Statistics.Health insurance coverage: Early release of estimates from the National Health Interview Survey, January–June 2022.Gaffney A, Himmelstein DU, Woolhandler S.Prevalence and correlates of patient rationing of insulin in the United States: A national survey.Ann Intern Med.2022;175:1623-1626. doi:10.7326/M22-2477Knox R.Insulin insulated: Barriers to competition and affordability in the United States insulin market.Journal of Law and the Biosciences. 2020;7(1). doi:10.1093/jlb/lsaa061

Verywell Health uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read oureditorial processto learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.

Hernandez I, San-Juan-Rodriguez A, Good CB, Gellad WF.Changes in list prices, net prices, and discounts for branded drugs in the US, 2007-2018.JAMA. 2020;323(9):854-862. doi:10.1001/jama.2020.1012Rajkumar SV.The high cost of insulin in the United States: An urgent call to action.Mayo Clinic Proceedings. 2020;95(1):22-28. doi:10.1016/j.mayocp.2019.11.013National Center for Health Statistics.Health insurance coverage: Early release of estimates from the National Health Interview Survey, January–June 2022.Gaffney A, Himmelstein DU, Woolhandler S.Prevalence and correlates of patient rationing of insulin in the United States: A national survey.Ann Intern Med.2022;175:1623-1626. doi:10.7326/M22-2477Knox R.Insulin insulated: Barriers to competition and affordability in the United States insulin market.Journal of Law and the Biosciences. 2020;7(1). doi:10.1093/jlb/lsaa061

Hernandez I, San-Juan-Rodriguez A, Good CB, Gellad WF.Changes in list prices, net prices, and discounts for branded drugs in the US, 2007-2018.JAMA. 2020;323(9):854-862. doi:10.1001/jama.2020.1012

Rajkumar SV.The high cost of insulin in the United States: An urgent call to action.Mayo Clinic Proceedings. 2020;95(1):22-28. doi:10.1016/j.mayocp.2019.11.013

National Center for Health Statistics.Health insurance coverage: Early release of estimates from the National Health Interview Survey, January–June 2022.

Gaffney A, Himmelstein DU, Woolhandler S.Prevalence and correlates of patient rationing of insulin in the United States: A national survey.Ann Intern Med.2022;175:1623-1626. doi:10.7326/M22-2477

Knox R.Insulin insulated: Barriers to competition and affordability in the United States insulin market.Journal of Law and the Biosciences. 2020;7(1). doi:10.1093/jlb/lsaa061

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