Lilly to participate in new Medicare model to cut out-of-pocket insulin costs

Eli Lilly (LLY -1.3%) announces that it will participate in a new Part D Senior Savings Model from the U.S. Centers for Medicare & Medicaid Services (CMS) designed to lower beneficiaries’ out-of-pocket costs for insulin.

The model, slated to go into effect January 1, 2021, will reduce the current $100 per prescription patient cost to no more than $35 per 30-day supply during their deductible phase, initial coverage and while they are in the coverage gap (doughnut hole). Seniors who need insulin who enroll in a plan participating in the model should save an average of $446 in annual out-of-pocket costs.

Current law prohibits insulin makers from providing co-pay assistance to Part D participants.

https://seekingalpha.com/news/3550626-lilly-to-participate-in-new-medicare-model-lowering-out-of-pocket-insulin-costs