House Democrats press insulin makers on pricing

House Democrats told major drugmakers Wednesday to explain why the price of their insulin keeps rising and why they cannot offer a cheaper product.

Energy and Commerce Committee Chairman Frank Pallone and Rep. Diana DeGette said they want Eli Lilly, Novo Nordisk and Sanofi to detail 10 years of insulin prices and what those prices are based on, how much profit they have made off the drugs, and whether the products have changed at all over time.

They also want to know if companies have done anything to delay generic competitors and how much consumers should expect to pay over the next five years.

Their letter adds to Congress’s mounting concern about the cost of life-saving medicine for diabetes sufferers, who rely on insulin to regulate their blood sugar. Many patients say the price of the drug is getting out of reach, forcing them to dangerously curtail their doses.

“No American should suffer because they could not afford their insulin. As one of the few manufacturers of insulin in the United States, your company is well-suited to shed light on these issues and offer potential solutions,” the lawmakers told each drugmaker.

Roughly 30 million Americans grapple with diabetes and 1.5 million are newly diagnosed each year, the committee said.

Elbert Huang, a professor of medicine at the University of Chicago, analyzed insulin use and spending from 2002 to 2013 and found the prevalence of diabetes rose 5 percent to 8 percent over that time, with the share of those people relying on insulin remaining constant.

However, the cost of insulin shot up three-fold over that time, from $4.34 per millimeter to $12.92 per millimeter.

“I think there has been more demand for insulin based on population increase and greater use per person, but I am not sure this justifies a three-fold increase in price,” he told The Washington Times.

Mr. Pallone and Ms. DeGette said the price continued to rise, nearly doubling between 2012 and 2016.

Both the Republican-led Senate Finance Committee and Democrat-controlled House Oversight and Government Reform Committee vowed Tuesday to get to the bottom of what’s driving the price increases, before Mr. Pallone fired off his letter.

A report drafted for members of Congress last year said the three companies being questioned by Mr. Pallone account for 90 percent of the global supply for diabetic patients and the entire U.S. supply.

“According to some analysts, lack of price competition in the U.S. insulin market is a contributor to the high cost of this vital drug,” said the Congressional Research Service.

The Energy and Commerce Committee said it is particularly concerned about rising spending under Medicare Part D, the health care program’s prescription drug benefit, and patients with high out-of-pocket costs.

“Diabetes patients who do not have insurance are particularly vulnerable to price increases,” they wrote.

Lawmakers frequently point out that insulin was discovered more than 100 years ago. They say that undercuts the pharmaceutical industry’s typical defense that higher prices are needed to recoup money spent on costly research and development.

Eli Lilly said it will answer the committee’s questions and appreciates the “interest in this topic.” It said it takes steps to defray the price for some lower-income customers, and that other players in the health care system need to do their part.

“A comprehensive policy solution for people with chronic diseases requires commitment from everyone in the health care system,” the company said.

Novo Nordisk also said the solutions need to go beyond the company.

“We recognize that more needs to be done across the healthcare system for people who are struggling to pay for medicines, and we want to do our part,” the company said.

It, too, pointed to programs to lower out-of-pocket costs for some consumers.

Sanofi didn’t respond to a request for comment.