Exploring Insulin Pricing Practices and Their Effects on Patients

Shortly after the passage of the US Inflation Reduction Act, which capped the price of insulin for some patients, three major drugmakers pledged to drop list prices for their insulin products. In a new IQVIA article, learn more about the role of insulin in diabetes management, the underlying forces driving insulin prices, and how this affects patients.

According to Vimal Gajera and Srikanth Jaikumar, “Manufacturers of brand-name insulin products provide deep rebates to PBMs. This forms part of a larger gross-to-net problem wherein the rebates and discounts offered exceed the net cost of insulin to the patient. In the past, cost of insulin expenditure flowing to drug manufacturers has steadily decreased and the profit share flowing through intermediaries has increased, especially among pharmacies, PBMs and 340B-covered entities. This mode of revenue sharing, with the intermediaries receiving a larger share than the producer, could be impacted in the future by list price changes.”

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(Source: IQVIA, May 17^th, 2023)