House passes legislation that could have Charlotteans paying much less for insulin
Legislation that proposes the cost of insulin is capped at $35 a month was passed by the House on Thursday, making it a step forward in President Joe Biden’s prescription drug plan included in the Build Back Better framework.
The legislation received a unanimous vote from Democrats and 12 Republicans who voted in favor of passing the bill. However, in order for the bill to be signed into law, the legislation will need to receive votes from at least 10 Republicans in the Senate.
If passed by the Senate, the law would lower costs for most Americans who need insulin to $35 for a monthly supply. This would mean a great deal of relief for members of the Charlotte community who are impacted by diabetes.
According to the most recent data from the United Health Foundation’s annual America’s Health Ranking report, nearly 13% of adults in North Carolina -- approximately 730,000 people -- have some form of diabetes and almost 21% of them make less than $25,000 a year.
These figures do not include health data from teens and children with diabetes which would push the total number of North Carolinians with diabetes well over that figure.
The legislation would result in the saving of hundreds, and even thousands, of dollars in yearly out-of-pocket expenses for North Carolinians who rely on the drug for survival.
State Treasurer Dale Folwell amended the State Health Plan to cut insulin costs for diabetic state employees that began in January 2021.
The State Health Plan provides health care coverage to more than 727,000 teachers, state employees, retirees, current and former lawmakers, state university and community college personnel, and their dependents.
“Members of the Plan who take insulin will not be responsible for any costs for their preferred or non-preferred prescriptions, Folwell said in a statement at the time. “The new policy is designed to increase adherence to the drug most commonly prescribed to treat diabetes.”
Folwell told the Observer on Friday that “we foresaw this two years ago, and our board took action on it.”
Earlier this year, Forbes reported that the newest versions of insulin cost anywhere from $175 to $300 a vial. The proposed bill would expand the coverage of insurance, including that of Medicare, to ensure that the maximum out-of-pocket expense for plan members is set to $35 per month.
The Congressional Budget Office estimated that the passing of this legislation would increase government spending. Biden, however, stated last December during a White House address to Americans impacted by high insulin prices that “prescription drugs are outrageously expensive in this country.”
The speech followed a White House news release last November that outlined the plan to decrease prescription drug costs as a part of Biden’s Build Back Better framework.
In addition to the plan to lower the costs of insulin, the legislation also proposes that a tax penalty be placed on companies that raise the cost of drugs faster than inflation and the lowering of out-of-pocket costs for senior citizens.
