By introducing an"authorized generic" version of its Humalog insulin, Eli Lilly hopes to deter lawmakers and regulators from cracking down on runaway drug prices. version of its Humalog insulin for about half the current list price.
At the same time, it avoids the unpleasantness of an honest-to-goodness price cut of its name-brand drug, which would raise questions about all its pricing decisions and scare the bejeepers out of shareholders, whoAll Lilly has done, in other words, is maintain the status quo in an industry that freely, and aggressively, gouges the most vulnerable members of society.
It also might include the very same insurers and pharmacy benefit managers that complain loudly about high drug prices. Why? Because they frequently receive kickbacks from drug companies in theThese aren’t the same rebates consumers might receive in discount programs. They’re paid to the insurers and PBMs, which theoretically could pass them along to patients in the form of savings.
Greg Kueterman, a Lilly spokesman, told me the company’s generic version is intended to assist not just people without insurance but also patients with high-deductible plans who are forced to pay the list price for insulin until their deductible is met. This, too, is remarkable. Lilly appears to be defending the current system of pricing drugs at astronomic levels so that various industry players can wet their beaks.
When Humalog was introduced in 1996, it cost $21 a vial, which is about a month’s supply for many people with diabetes. The list price is now approaching $300 a vial.“The current system operates under a rebate model, and health plans can use rebates to reduce premiums for all members of their plan or fund other priorities,” Kueterman told me. “But they don’t always directly pass on to patients the rebates they receive.