The price of insulin in the United States stands out sharply when compared to other wealthy nations, with Americans paying more than nine times what people in 33 other high-income countries do for the same medication.
This stark difference highlights a longstanding issue with drug pricing in the U.S., especially for a treatment as critical as insulin, used by millions to manage diabetes.
Insulin, vital for controlling blood sugar levels in individuals with diabetes, comes in various forms, each with different effects and durations.
Despite the essential nature of this medication, its cost in the U.S. has seen a significant rise, particularly since the early 2010s.
Federal data points out that from 2012 to 2016, the price for different types of insulin rose annually by 15% to 17%, a trend that puts a considerable financial strain on those who depend on it.
A new report by RAND, a respected nonprofit research organization, sheds light on this issue, updating previous findings and confirming that the U.S. continues to pay disproportionately high prices for insulin.
The study’s lead author is Andrew Mulcahy, a senior health economist at RAND. He emphasizes the longstanding nature of these high costs and the impact on American patients.
While the gross prices of insulin in the U.S. are markedly higher, even after accounting for rebates and discounts often provided by manufacturers, the cost remains 2.3 times higher than in other comparison nations.
This difference persists across various types of insulin and regardless of the comparison country, with U.S. prices always significantly higher.
The research analyzed data from 2017 through 2022, comparing U.S. insulin prices with those in countries part of the Organisation for Economic Co-operation and Development (OECD).
The findings are stark: U.S. gross prices for insulin are on average nearly ten times those in other OECD countries. Even after adjusting for discounts, U.S. prices are still more than double those abroad.
This pricing disparity has real-world implications for Americans, especially those without comprehensive drug coverage, making insulin affordability a critical issue.
However, there’s a glimmer of hope for people with Medicare, as the Inflation Reduction Act will cap insulin cost-sharing at $35 per month starting in 2024, a change that could strongly ease the financial burden for many.
The ongoing debate in Congress about extending this cap to more Americans highlights the urgency of addressing insulin affordability.
The RAND report, co-authored by Daniel Schwam and Nate Edenfield, brings attention to the issue and sets the stage for a broader discussion on drug pricing and healthcare policy in the United States.
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The research findings can be found in RAND.
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