U.S. Rep. Tom Reed (R-NY) this week introduced the Insulin Price Reduction Act, bipartisan legislation that would significantly reduce the cost of insulin products.
“We have seen far too many stories of people rationing, driving across the border to Canada, or flat out going without insulin because of the high costs,” Rep. Reed said. “This isn’t fair, and I am proud to introduce this bipartisan, common sense bill to dramatically slash the price of this crucial drug so many Americans rely on to get through the day.”
Rep. Reed introduced the bill, H.R. 4906, on Oct. 29 with U.S. Rep. Diana DeGette (D-CO). Both lawmakers serve as co-chairs of the Congressional Diabetes Caucus.
Drug makers feel pressure to raise the list price of their products in order to afford the large rebates that many insurers now expect. This practice of inflating list prices particularly harms Americans who don’t have health coverage or who have not yet reached their deductible, Rep. Reed’s office said.
The bill would incentivize the three makers of insulin in the United States to lower the current list price of insulin products to the price they were listed at in 2006, thereby reducing the cost of most insulin products by more than 75 percent. In exchange, the drug makers would be protected from having to offer additional rebates to insurers in order to have their products covered, according to a summary of the legislation. The bill would also prohibit health insurers from refusing to cover any insulin product that had been priced at or below the 2006 list price.
Insulin products currently cost roughly $300 a vial, compared to approximately $68 a vial on average in 2006.
“We have to do something to end the industry’s use of these massive drug rebates that are driving up the cost of this life-sustaining drug for the millions of Americans who desperately need it,” Rep. DeGette said.
A similar version of the bill, S. 2199, was introduced in July by U.S. Sens. Susan Collins (R-ME) and Jeanne Shaheen (D-NH).