- Eli Lilly caps the out of pocket expense for insulin at £27.50/month for U.S patients.
- U.S drugmaker's co-pay scheme will not cover the patients enrolled in government insurance.
- Trump administration to reduce the out of pocket cost for insulin to £27.50/month.
Eli Lilly & Company (NYSE:LLY) announced a cap of £27.50/month on the out of pocket expense for insulin on Tuesday. The company said that it wishes to help the U.S patients that are facing financial challenges ascribed to the ongoing COVID-19 pandemic.
The American pharmaceutical company launched the new co-pay scheme that covers the patients with commercial insurance and the ones without insurance as well. The scheme, as per the drugmaker, applies to almost all of its insulins including the most popular Humalog injection.
According to Eli Lilly’s chief executive officer, Aaron Kowalski:
“Enabling a $35/month (£27.50/month) insulin co-pay regardless of employment status will help many Americans in this difficult time.”
Eli Lilly’s Co-Pay Scheme Doesn’t Apply To Patients Covered By Government Insurance
The drug manufacturer also highlighted in its statement on Tuesday that all patients that are currently covered by the government insurance including Medicare, Medicaid, Medicare Part D or a Pharmaceutical Assistance Program will not be eligible for Lilly’s new co-pay scheme.
According to a report, Insulin prices have roughly climbed 100% from 2012 to 2016. The out of pocket expense for patients that rely on their high-deductible insurance plans amount to thousands of dollars before their health insurance begins to cover the cost.
Following excessive criticism from patients and the U.S lawmakers, prominent insulin manufacturers like Novo Nordisk, Sanofi SA, and Eli Lilly have recently made their life-sustaining diabetes drugs more affordable for the consumers.
A range of pharmacy benefit managers including UnitedHealth Group, Cigna Corp, and CVS Health Corp, currently have plans for patients that cover a significant or even the entire cost of diabetes medicines including insulin.
Data from the federal healthcare program shows that the U.S patients pay close to £550 on average for insulin every year.
Trump To Reduce Out Of Pocket Insulin Expense For Patients Enrolled In Medicare
In March, President Donald Trump had also announced plans of reducing the insulin-related out of pocket expense to £27.50/month for patients that are covered by Medicare. The new pricing, as per the government, will be tested in 2021.
Despite the ongoing health emergency that has disrupted business for numberless companies, Eli Lilly has managed to sustain strength in the stock market. At £114.68 per share, the stock is currently trading around 7% up in 2020 so far.
The U.S drug manufacturer had recorded an annual gain of 15% in the stock market in 2019. At the time of writing, Eli Lilly is valued at £109.77 billion.