On Tuesday, President Trump announced a plan to reduce the cost of insulin for seniors.
The agreement, struck with insulin manufacturers and healthcare providers, will reduce the copays for insulin to $35 for Medicare beneficiaries. That’s a reduction of about 66% from the current cost, according to the White House.
An estimated 1 in 5 people over age 65 have diabetes, which is more than 9 million Medicare enrollees.
“This is a big day for seniors. It is a tremendous saving,” Trump said at a White House press conference.
The announcement comes on the heels of a House of Representatives hearing last month on the rising price of insulin.
The pharmaceutical company Eli Lilly, a major producer of insulin, charged $35 for a month’s supply in 2001. By 2019, that had risen to $275. Other producers have seen similar increases.
Many factors are likely responsible for the sharp increases in price, including the difficulty of producing generic insulin, patent law, and that three producers (Eli Lilly, Novo Nordisk, and Sanofi) account for about 90% of the global insulin market.
