US Cost of Insulin Nearly Doubled in Five-Year Period

A study shows insulin costs per patient with type 1 diabetes have almost doubled from 2012 to 2016, adding turmoil to the fight against rising drug prices.

According to a recent analysis published by the Health Care Cost Institute (HCCI), type 1 diabetics spent $2864 per-person on insulin in 2012, compared with the exponentially increased cost of $5705 per-person in 2016.

These costs represent gross spending by patients and their health care plan and do not account for rebates or coupons that could lower spending. However, HCCI used the same data and considered a case where discounts offset the gross cost of insulin by 50% each year and the scenario still proved that costs have doubled.

The increased costs of the lifesaving drug have caused unease and some cases, unsafe practices by patients that could threaten their health. “There has been a flurry of news reports sharing stories of individuals with diabetes rationing their insulin because they cannot afford higher and higher prices. These anecdotes are consistent with findings of researchers documenting price increases on diabetic therapies, specifically insulin, over the last several years,” HCCI stated in the report.

The HCCI analysis also shows that rise in cost does not correlate with an increase in usage. “In 2016, average daily insulin use was 62 units, a 2-unit or 3% increase from 2012.”

In a phone interview with Reuters, Jeannie Fuglesten Biniek, a senior researcher at HCCI and the report’s co-author, said, “It’s not that individuals are using more insulin or that new products are particularly innovative or provide immense benefits. Use is pretty flat, and the price changes are occurring in both older and newer products…The exact same products are costing double.”

“There are two types of insulin: basal (intermediate or long-acting) and mealtime (short or rapid-acting). HCCI explored whether the cost increases were associated with either of the specific treatments and found similar escalation patterns for both types."

“The average point-of-sale price nearly double, rising from $0.13 per unit to $0.25 per unit. That translates to an increase from $7.80 a day in 2012 to $15 a day in 2016 for someone using an average amount of insulin (60 units per day),” HCCI said in the report.

Type 1 diabetes is a chronic condition affecting approximately 1.5 million Americans, according to the American Diabetes Association. Type 1 diabetics’ pancreases stop producing insulin and therefore, their bodies are unable to process sugar properly. Due to the nature of the condition, type 1 diabetics rely on a lifelong insulin regimen. —Edan Stanley