Price Controls Won't Make Insulin Affordable

Language about insulin is supposed to be one of the bigger selling points of the Build Back Better Act. Democrats say prices would be capped at $35, which is true from a certain point of view. Insulin co-pay prices get capped at $35 — starting in 2023 — for Medicare Part D and Medicare Advantage plans. Individual and private insurers face different rules, however, only having to charge $35 for either a vial or a pen. They can also pick one kind of insulin to cover.

Insulin price controls are a hot topic right now for good reason. Over the last twenty-three years, Humalog brand insulin has gone from $21 a vial to $275. The generic version of insulin called Semglee costs almost the same. Rebates exist but it’s still a hefty price tag given that generics are typically 85 percent cheaper than brand-name drugs.

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