Eli Lilly has agreed to a settlement to provide low-cost insulin to Minnesota patients, addressing a lawsuit accusing it and two other major insulin manufacturers of deceptive price inflation. Under the agreement, filed in a New Jersey federal court, Lilly will cap out-of-pocket expenses for its insulin products at $35 a month for patients in Minnesota, a policy applicable to uninsured individuals and those who opt to bypass their insurance. The settlement also includes a provision for Lilly to donate insulin to 15 clinics in Minnesota, ensuring access to those in financial need. This move, effective for five years, has been hailed by Minnesota Attorney General Keith Ellison as a significant step towards making insulin affordable and accessible to all Minnesotans in need. The lawsuit, initiated by Minnesota in 2018 against Lilly, Novo Nordisk, and Sanofi, alleges that these companies artificially inflated insulin prices while offering rebates to pharmacy benefit managers. Despite Lilly’s previous announcement to lower insulin prices amidst growing pressure from various stakeholders, the issue of high treatment costs persists for many. This settlement reflects ongoing efforts to bridge gaps in the U.S. healthcare system and increase the affordability of essential diabetes treatment.
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[Source: Reuters, February 7th, 2024]