Insulin Prices Drop to $35 Cap Amidst Drug Price Hikes

Major insulin producers lower prices in response to new rules from the Inflation Reduction Act and the American Rescue Plan Act of 2021.

Pharmaceutical companies have raised prices on hundreds of drugs in early January, with Pfizer accounting for about 25% of all drug price hikes.
The cost of insulin is dropping to a maximum of $35 per month for millions of Americans as of January 1, due to the Inflation Reduction Act.
Major insulin producers have announced their own discount programs to match the $35 cap for most patients and are lowering retail prices on their insulin drugs.
The price cuts are expected to save the companies money overall as they avoid what could have been massive rebate payments under the new rules.
The American Rescue Plan Act of 2021 altered an existing provision that forces companies to rebate Medicaid when list prices for its drugs are increased above the rate of inflation, leading to significant price cuts.