Blue Cross Health Insurers Back Nonprofit Drug Maker’s Cheaper Insulin

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Blue Cross Health Insurers Back Nonprofit Drug Maker’s Cheaper Insulin
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Blue Cross and Blue Shield health insurance companies say they will join the effort by nonprofit drugmaker Civica Rx to make and sell cheaper versions of insulin

and distribute “insulins that, once approved, will be available to people with diabetes at significantly lower prices than insulins currently on the market.”

Having the Blue Cross and Blue Shield plans on board is an indication of the potential to shift coverage away from higher priced insulins to the generic version Civica plans to introduce. Insurers have ways to move the market when it comes to drug costs by shifting higher priced prescriptions on their preferred lists of drugs known as formularies to a different tier that would lead health plan enrollees to choose a less expensive generic.

The new insulin will be available sometime in 2024 “in vials and prefilled pens at no more than $30 per vial or $55 for a box of five pens,” Civica Rx said. The lower cost is much less than prices that can list for more than $100 and in some cases more than $500. Earlier this week during his State of the Union speech, President Biden ripped into drug companies for charging high prices for insulin as part of his call for a cap of $35 per month for patients.

“Imagine what it’s like to look at your child who needs insulin and have no idea how you’re going to pay for it,” Biden said. “Let’s cap the cost of insulin at $35 a month so everyone can afford it.”

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