On the surface it looks like an amazing step forward. Eli Lilly, one of the major producers of insulin, (among the three companies that control 90% of the insulin market)1 announced that it is lowering the cost of some of its older insulin products by 70%. It was a shrewd and coldly calculated move to make the company look good in the public eye and fend off the inevitable mandates that the U.S. government is working to implement.
Recently, legislation was passed to cap the price of insulin at $35 a month for people enrolled in the Medicare D program. Democrats tried to get the bill to apply to all Americans but their efforts were stymied by the pharmaceutical lobby that owns more politicians than most other businesses.
Eli Lilly knows that it is just a matter of time before new laws are enacted to lower insulin prices across the board so they made a pre-emptive strike in the insulin wars. According to the New York Times, “Lilly trumpeted its decision as a victory for patients. In reality, though, Lilly’s moves are more limited than they initially appear. Lilly’s existing $35 cap on out-of-pocket payments will be easier for privately insured patients to take advantage of.