Rep. Walden: Energy and Commerce Republican Leaders Press Insurers on Rising Insulin Prices

WASHINGTON, Dec. 6 -- Rep. Greg Walden, R-Oregon, ranking Republican member of the House Energy and Commerce Committee, issued the following news release:

Energy and Commerce Committee Republican Leader Greg Walden (R-OR), Oversight and Investigations Subcommittee Republican Leader Brett Guthrie (R-KY), and Health Subcommittee Republican Leader Michael Burgess.(R-TX) are pressing top insurance companies for answers as to their role in the rising cost of insulin.

In letters to Anthem, Blue Cross Blue Shield, CVS Health, Cigna Corporation, Kaiser Permanente, and UnitedHealth Group, the leaders request information on the relationship between insulin's list price and its negotiated price and the impact this negotiation process has on patients.

"We are continuing to investigate the rising costs of health care across numerous services and products, including, but not limited to, spending on hospitals, physicians, and prescription drugs. As part of this work, we have focused on the increasing price of insulin for patients with diabetes," the leaders wrote.

The letters come as Energy and Commerce Republicans are calling for cooperation from Democrats on bipartisan solutions to lower drug costs for Americans, rather than Speaker Pelosi's partisan drug pricing bill that will result in fewer cures. During an Energy and Commerce markup of H.R. 3 in October, Democrats rejected an amendment from Rep. Burgess to ensure that all savings from price concessions for insulin be passed directly to consumers.

Republicans will soon release bipartisan legislation to lower costs at the drug counter for patients and seniors, including provisions specifically designed to make insulin more affordable.

Although the list price of many insulin products significantly increased over the past decade, the net price received by manufacturers for many of these insulin products stayed the same or decreased over the same period.

"Unfortunately, even though the average net price that manufacturers are receiving for many insulin products is decreasing and PBMs are working with health plans to help reduce the cost of insulin for health plans, many Americans are facing increased out-of-pocket costs for their insulin at the pharmacy counter," the leaders continue in their letters. "We are therefore examining the role of insurers in the prescription drug supply chain, including questions about how insurers make decisions about plan design, the use of rebates in the insulin market, and the level of transparency between insurers and their supply chain partners"

The leaders request information from the insurance companies on the following:

1. Cost of insulin to health plans and use of rebates negotiated on the company's behalf.

2. Formulary development.

3. Health benefit design.

4. Supply chain relationships.

5. Transparency.

6. High Deductible Health Plans (HDHPs).

7. Patient assistance programs.

Click here (https://republicans-energycommerce.house.gov/news/letter/letter-to-insurers-on-rising-price-of-insulin/) to read the letters.