After raising some insulin prices over $350, Illinois joined Colorado by placing a cap on the amount that pharmacies can charge for insulin in those states.
On May 23, Colorado governor Jared Polis signed the bill
into law, with it going into effect on Jan. 1. Illinois governor J.B. Priztker
signed the bill on Jan. 24, yet it does not go into effect until 2021.
In both states, the laws limit the price of insulin to $100 for a 30-day supply, and only counts towards out-of-pocket cost.
In Illinois, the law only works for members of state insurance, which is 20 percent of the state. It does not work towards federal-funded insurance, which includes Medicare and Medicaid.
Jon Sambs, Delzell Hall pharmacy manager, said when asked
about the Illinois law, “One of their senator’s concerns is that it might
transfer into different diseases, not just diabetes.”
In 1921, insulin was introduced to market for the first
time. Since then, it has seen many changes in its production and method of
injection.
Insulin production started when pharmaceutical manufacturers took insulin from cattle and pigs to dispense to humans, which cause many allergies. In 1978, scientists discovered that the E. coli bacteria could be used to produce insulin, making it a safer and pricier product to dispense.
The production method is not the only factor in why the cost
is rising. Another is the method of injection.
Originally, insulin in a vial was the only form to receive the medication in. Over the years, pens were introduced, which made production more expensive as well.
Most believe that the manufacturing companies receive the majority of the profits from insulin sales. In reality, the three pharmaceutical manufacturers, Eli Lilly, Novo Nordisk, and Sanofi, with the ability to produce the life-saving drug receive very little compared to the middle men.
It is actually the Pharmacy Benefit Managers that get the majority of the profits, and are the primary reason for the rising cost of insulin. Unfortunately for those dependent on life-saving medications, the PBMs are very hidden in negotiations and like to keep all parts of negotiations with manufacturers, wholesalers, and health insurance companies closed off from the public.
The PBMs take part in creating rebates between
manufacturers, wholesalers, and different pharmacies as an incentive to raise
the list price. Essentially, if the list price is raised, someone gets a boost
from the PBMs.
Insulin prices have nearly tripled in the past decade because
of the dealings that the PBMs take part in. And because there are only three
manufacturers in the world, they are often competing with each other for the
highest price, as well as with the PBMs to get their product on the shelves.
Sambs said, “I think it’s a really good start. It only
applies to state-regulated insurance, which is about twenty percent of their
population, and I think it’s going to help a lot of people.”
Delzell Hall does not dispense insulin on campus because of
the high price for the product. The fear is that, should it be carried here,
the cost factored in for healthcare would rise and become more expensive for
students.
For health related concerns or questions, Delzell Hall is open for appointments from 8 a.m. to 12 p.m. and 1 p.m. to 4 p.m. The pharmacy is open from 9 a.m. to 4 p.m. Delzell is located directly behind the Dreyfus University Center, and appointments can be set up via their website.
