America's Benefit Specialist July 2023

INSULIN PRICES

Importantly, the Inflation Reduction Act passed in 2022 caps certain insulin brands at $35 per month for patients on Medicare. In addition, Eli Lilly voluntarily agreed to cap the price of insulin at $35 or less per month in early March for its non-branded insulin Humulin and Humalog. Drug makers Novo Nordisk and Sanofi were included in the litigation, but neither has agreed to any settlement as of the time of this article. Interestingly, both have volun tarily agreed to cap the price of certain insulin brands that they manufacture. In a 2022 study conducted by the Annals of Internal Medicine , it was estimated that 1.3 million Americans ration their intake of insulin, solely due to the cost of the drug. And according to the American Diabetes Association, the price of insulin tripled between 2002 and 2013. Some of the more shocking testimony that came out of the litigation brought to light that some patients resorted to intentionally starving themselves in an attempt to control blood sugar levels. Still others would intentionally allow their bodies to slip into Ketoacidosis, a severe complication associ ated with diabetes, in order to gain access to emergency- room care.

While the agreement between Eli Lilly and the litigants is technically not finalized, it is expected that the U.S. District Court for the District of New Jersey will do so soon. In addi tion, it is anticipated that more manufacturers will follow suit and voluntarily reduce the price of their insulin. The House has already passed a bill to compel manufacturers to cap insulin prices and, if the Senate follows suit, we’ll likely see a federal law regulating insulin pricing.

Scott Stevens is an employee benefits and consumer-directed healthcare specialist, helping employer organizations of all types reduce their health insurance and related employee benefits costs. His career has included stints as vice president of sales/ marketing for a national insurance compa ny, co-founder and executive vice president

of a TPA and founder of The HSA Toolkit (employer/employee education and sales system). Scott earned a B.S. in market ing/economics from the State University of New York at Oswego.

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