The Financial Burden of U.S. Insulin Pricing on the American Diabetic Community

New research provides insight into the status of insulin pricing in the U.S., its financial impact on diabetics’ across the country and the extent to which the latest legislation will support the diabetic community. 

Insulin prices have been rising annually in the U.S. for years, with the country maintaining the highest average price for insulin around the world by a staggering margin. The Affordable Insulin Now Act, which will go into effect in late 2022, will offer reprieve for many Americans by capping copays. Yet, unfortunately the legislation does not lower the actual price of insulin, leaving behind the many American diabetics who do not have health insurance. 

To explore this further, CharityRx commissioned a survey of 2,000 U.S. adults aged 18 and over who have diabetes and/or provide care to someone with diabetes, including 1,000 insured and 1,000 uninsured adults. The analysis is accompanied by third-party data sourced from the CDC’s United States Diabetes Surveillance System and the National Diabetes Statistics Report.

DIABETES AFFECTS 37 MILLION AMERICANS ACROSS THE COUNTRY

Diabetes affects 1 in 10 Americans, taking a serious toll on both quality of life and personal finances for many. According to the CDC, people with diagnosed diabetes have more than twice the average medical costs than those without diabetes.

The following charts show the prevalence of diabetes across the country

INSULIN PRICING IN THE U.S. POSES SIGNIFICANT FINANCIAL STRAIN ON DIABETICS AND THEIR CAREGIVERS, WITH PRICES RISING YEAR ON YEAR

The United States far surpasses the global community when it comes to average prices for insulin, and sadly, pricing has only risen year over year. The high cost of this vital, life-saving medication has led far too many American diabetics to struggle financially. When comparing the U.S. to countries around the world, the cost of insulin in the U.S. is 8 times higher than the combined average of other high-income nations.

According to the survey:

• 79% say that insulin has posed a financial difficulty for them personally, or for those in their care
• 4 in 5 have taken on credit card debt to afford insulin
• $9K is the average amount of debt people have taken on to cover insulin costs

INABILITY TO AFFORD INSULIN HAS LED MANY TO RATIONING AND/OR OTHER DIFFICULT COMPROMISES

The exorbitant pricing of insulin in the U.S. has forced many diabetics and their caregivers to make difficult decisions and compromises that put their health and/or livelihood at risk. Of the 4 in 5 who’ve struggled financially due to insulin pricing:

• 83% say they’ve feared not being able to pay for living expenses due to high insulin costs, cutting expenses such as clothing (55%), food costs (50%) and for some, even rent/mortgage (29%)
• 63% have felt pressure to sell prized, personal possessions (63%), put themselves in risky situations (50%) or to sell prescriptions or illicit drugs (32%) in order to obtain the money needed for insulin
• In an effort to lower costs, 62% have skipped and/or adjusted the dosage of insulin injections for themselves, or as a caregiver for someone else to cut down on costs
• Of those who’ve rationed their insulin, diabetics have experienced the following negative impacts on their day to day life:
  • Inability to do everyday activities (54%)
  • Inability to work (44%)
  • Admission to the hospital for one or more days (38%)
  • Inability to attend school (37%)
• Further, 38% have been admitted to the hospital for more than one day and 33% have become sick with an additional health issue as a result of insulin rationing

THE AFFORDABLE INSULIN NOW ACT WILL MAKE A SIGNIFICANT DIFFERENCE FOR INSURED AMERICANS

The latest legislation in the Affordable Insulin Now Act will substantially reduce the costs of insulin for Americans who have access to health insurance, capping copays to just $35, offering a significant financial reprieve that leaves many insured diabetics feeling relieved and hopeful for the future.

• 73% of insured diabetics are satisfied with President Biden’s plan to cap insulin copays as a part of the Affordable Insulin Now Act
• 76% of insured diabetics feel that their quality of life will be improved by the Affordable Insulin Now Act
• 79% of insured diabetics feel that their stress and/or anxiety will be reduced by the Affordable Insulin Now Act

The following charts show how much the average diabetic will save monthly with a $35 cap on insulin pricing, including a breakdown of the monthly savings by pharmacy.

YET FOR AMERICANS WITHOUT HEALTH INSURANCE, THE COST OF INSULIN WILL REMAIN HIGH

Unfortunately, while the Affordable Insulin Act will significantly benefit insured diabetics across the country, the financial burden of insulin costs on uninsured Americans remains a concern, leaving many without hope for a solution to their financial struggles.

Across the U.S., this map shows both the percentage of people who have diabetes and the percentage of people without health insurance, by county. 

While the Affordable Insulin Now Act is a strong first step in reducing the price of insulin for a large population of Americans, there is still a clear need for a solution for those without access to health insurance. 

In addition to changes to insulin copays and potential future legislation that could cut down the cost of insulin for uninsured Americans, there are also opportunities for diabetics to save by shopping around at various pharmacies, which often vary significantly when it comes to their pricing for insulin, as well as through the use of discount prescription services, such as CharityRx, which can offer substantial savings on life-saving drugs such as insulin.  

ABOUT CHARITYRX:

CharityRx, a leader in making medicine affordable and accessible for millions of Americans, understands the need to make prescription costs inexpensive and has been active in offsetting these increases caused by inflation. Its free discount card helps insured and uninsured individuals save up to 80% on prescriptions and keeps discounts consistent via its network of over 75,000 pharmacies.

METHODOLOGY:

CharityRx commissioned this survey in collaboration with market research provider, Pollfish, including 2,000 U.S. adults aged 18 and over who have diabetes and/or provide care to someone with diabetes. The survey included quotas for 1,000 insured and 1,000 uninsured adults who are either personally afflicted with diabetes or provide care for someone with diabetes. 

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