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Drug Makers Try to Justify Prescription Prices to Senators at Hearing

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Eli Lilly to Sell Cheaper Version of Humalog Insulin Amid Soaring Costs For Diabetes Patients

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Multiple congressional inquiries have focused on insulin, and last week executives for seven major drugmakers testified on drug prices in a hearing before the Senate Finance Committee. President Trump has also made the issue a priority. Critics have singled out insulin manufacturers because versions of the lifesaving diabetes treatment have been around since the s, yet the three companies that control the market — Lilly, Novo Nordisk and Sanofi — have consistently raised list prices over the past decade.

Outrage over the cost of insulin has driven much of the political conversation about high drug prices, with reports of patients dying because they could not afford it. In February, the Senate Finance Committee sent Lilly a letter asking for more information about how it sets prices for its insulin products, including Humalog.

Humalog Prices, Coupons & Patient Assistance Programs -

The story of insulin, many say, is a salient example of how the drug pricing system is broken. Over the years, industry intermediaries known as pharmacy benefit managers have negotiated ever-deeper discounts for insulin, yielding savings for the insurers and employers that pay the bulk of drug costs. Insulin manufacturers have responded by raising their list prices in an effort, they say, to please the benefit managers, who keep a percentage of the discounts they pass along.

Humalog patients typically use about two vials a month, Lilly said. The result is a yawning gap between the list price of insulin — which people who are uninsured must pay — and the net price that insurers and employers pay.

Humalog Prices, Coupons and Patient Assistance Programs

Enrique A. But he said the company provided deeper discounts to insurers that give Humalog preferred treatment, which typically means lower out-of-pocket costs for patients. By releasing an authorized generic of Humalog, Lilly will permit its existing contracts with insurers to continue, while offering a more affordable alternative to people who pay out of pocket. Other drug companies have made similar moves while facing heat for their prices. In , Mylan began selling an authorized generic of the EpiPen in response to outrage over the price of the allergy treatment.