Retail conglomerate Walmart announced the creation of its own brand of analog insulin to offer diabetics a more affordable option than the expensive brand name versions.
“We know many people with diabetes struggle to manage the financial burden of this condition, and we are focused on helping by providing affordable solutions,” Walmart’s executive vice president of health and wellness, Dr. Cheryl Pegus, said on Tuesday.
The line of insulin products was developed by Novo Nordisk, one of three insulin manufacturers that dominate over 90% of the market, to create Walmart’s private ReliOn brand. The vials will be priced at $72.88, whereas the non-Walmart brand of Novo Nordisk insulin retails for about $144.68 per vial. The store will also dispense a less costly version of a prefilled insulin pen that allows patients to deliver the hormone without having to rely on individual vials, called the FlexPen, for roughly $85. In total, Walmart projects cost savings for patients of up to $101 per Walmart-branded vial or $251 per package of FlexPens.
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“Diabetes often comes with high medical costs, estimated around $9,601 per person per year,” said Tracey Brown, CEO of the American Diabetes Association. “We welcome all affordable solutions that make diabetes management more accessible to millions of Americans living with diabetes.”
The cost of insulin has risen dramatically since the early 2000s, leading to high out-of-pocket costs, even for those with private insurance plans or a plan under Medicare, the government insurance program for seniors. In fact, Medicare spending on insulin increased 840% between 2007 and 2017, from $1.4 billion to $13.3 billion, according to the Kaiser Family Foundation. Medicare beneficiaries’ out-of-pocket costs quadrupled over that same time period, from $236 million to $968 million.
Meanwhile, the list price for a vial of NovoLog that uninsured people would have to pay increased by 310% between 2003 and 2016 after adjusting for inflation, said researchers at the Commonwealth Fund. Out-of-pocket costs for patients with insurance were less likely to exceed $100. Meanwhile, more than 70% of insulin prescriptions filled by uninsured patients cost more than $100 out of pocket. About 47% of all uninsured patients who filled prescriptions for insulin paid completely out of pocket.
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Uninsured patients stand to benefit most from the lower list prices for Walmart-branded insulin. Patients without insurance are also more likely to use less effective insulin products because of their increased affordability.
