For persons with Type 1 and Type 2 diabetes, Danish pharmaceutical manufacturer Novo Nordisk has said it will reduce the U.S. list costs of a number of insulin medicines by up to 75%. Following Eli Lilly’s statement earlier this month that it was capping out-of-pocket expenditures for insulin at $35 per month, it does so as the second pharmaceutical company.
Levemir, Novolin, NovoLog, and NovoLog Mix 70/30 are just a few of the pre-filled pens and vials of basal (long-acting), bolus (short-acting), and pre-mix insulins made by Novo Nordisk. In order to match the lower list prices of each individual brand of branded insulin, the company is likewise cutting the price of unbranded biologics. The new rules will be in place as of January 1, 2024.
It was acknowledged by Novo Nordisk that some patients have financial difficulties affording medical care, including insulin. According to the corporation, it is still committed to lowering out-of-pocket expenses, assisting in the transformation of the convoluted pricing structure, and promoting greater pricing predictability.
“We are glad that more manufacturers are continuing to take measures to make insulin more inexpensive, and we hope that more follow suit,” said Lisa Murdock, chief advocacy officer for the American Diabetes Association. The ADA claimed that it had spearheaded efforts to pass federal copay caps for Medicare and cost-sharing caps on insulin in 22 states and Washington, D.C.
The Inflation Reduction Act’s insulin provisions set a beneficiary cost sharing cap for Medicare Part B at $35 for a month’s supply of insulin.
Eli Lilly stated earlier this month that as part of its Insulin Value Program, it was lowering the list price of its insulin by 70% and capping out-of-pocket expenses at $35 per month. In participating retail pharmacies, Lilly has capped out-of-pocket expenses for those using Lilly insulin with commercial insurance at $35.
According to an HHS assessment, the Inflation Reduction Act’s $35 cap on a month’s supply of insulin will save money for about 1.5 million Medicare beneficiaries.
In addition, the study discovered that the national average out-of-pocket expense for an insulin fill in 2019 was $58 for a 30-day supply. One in five Americans who take insulin paid more than $70 each prescription, according to the study, while patients with private insurance or Medicare paid an average of $63 per fill.
Steve Albers, senior vice president of Market Access & Public Affairs at Novo Nordisk, stated that the company has been attempting to create a viable future strategy that strikes a balance between patient affordability, market dynamics, and developing legislative changes. “Novo Nordisk is still committed to making sure that people with diabetes can afford our insulins; this is a responsibility we take seriously,” the company said.