A lady who has had type 1 diabetes since she was a youngster shows injectable insulin on March 2, 2023, Recent York City.
Spencer Platt | Getty’s paintings
President Joe Biden’s federal budget proposal would limit insulin prices to $35 a month for people with private insurance coverage.
The Inflation Reduction Act capped monthly insulin costs at this price for seniors in January, but ignored everyone who wasn’t on Medicare. Biden urged Congress in his State of the Union address to finish the job and limit insulin to $35 a month for everyone.
The price ceiling in the budget would exclude the uninsured. Health Secretary Xavier Becerra told reporters Thursday that the president believes nobody in the US should pay greater than $35 a month for insulin.
Becerra said one of the quickest ways to cut insulin costs for the uninsured could be for the 10 remaining states that did not expand Medicaid to accomplish that. Medicaid is a public medical health insurance program for people with lower incomes.
Drug manufacturer Eli Lily preempted a possible federal mandate by announcing earlier this month that it might cap insulin at $35 a month for those with private insurance at certain retail pharmacies. But CEO David Ricks said in an announcement that 7 out of 10 Americans don’t use Lilly insulin. He called on federal policymakers and employers to help reduce injection costs.
Read more about Biden’s fiscal 12 months 2024 budget plan:
Biden praised Lilly’s decision and urged other producers to follow suit. He also reiterated his call for Congress to lower insulin prices for everyone else.
According to the American Diabetes Association, about 40% of people with diabetes have private insurance and 5% are uninsured.
Some Republicans in Congress oppose the move to cap insulin prices. Rep. Cathy Rodgers, chair of the House Energy and Commerce Committee, called the Biden administration’s efforts to lower insulin prices “socialist” and “federal mandates” which might be detrimental to market competition.
Join CNBC’s Healthy Returns program on March 29 as we convene a virtual meeting of healthcare CEOs, scientists, investors and innovators to reflect on the advances made today to reinvent the future of medicine. As well as, we may have an exclusive list of the best investment opportunities in biopharmaceuticals, medical technology and managed care. Discover more and register today: http://bit.ly/3DUNbRo