The Insulin Reduction Act (House Bill 384)

by: Andy Jesson, AOF Policy & Communications Intern

Over one million Ohioans have diagnosed diabetes and rely upon prescription insulin for their everyday well-being. For people with diabetes, insulin is vital, and often costly. Nationally, the price of a 30-day supply of insulin increased by 184 percent between 2012 and 2021. Prices have declined slightly in recent years but still remain significant for individuals already paying more on healthcare. On average, people with diabetes spend 2.3 times more on medical expenses compared to those without diabetes.

High insulin costs can have devastating health consequences, with some individuals forced to ration their supply. In one study of Americans with diabetes under the age of 65, nearly a third had rationed their insulin supply at least one time over the preceding year as a means of saving money. Individuals rationing their supply of insulin increase the risk of multiple health complications, including diabetes-related ketoacidosis (DKA), a serious, life-threatening complication that occurs when an individual’s body is not producing enough insulin. Diabetes is the eighth-leading cause of death in the state of Ohio, further emphasizing the need for proper treatment of the condition to mitigate the risk of life-threatening consequences.

Representatives Munira Abdullahi and Thomas Hall recently introduced House Bill 384, also known as the Insulin Reduction Act, which would cap out-of-pocket costs for insulin and diabetes-related devices. The proposed legislation caps insulin costs for Ohioans at $35 a month, and caps the cost of diabetes devices at $100 monthly.

Part of the 2022 Inflation Reduction Act passed at the federal level included a cap on the monthly cost of insulin for individuals enrolled in Medicare at $35 per month. This change represented a significant cost reduction for individuals enrolled in Medicare, but the Inflation Reduction Act did not reduce costs for individuals with diabetes who utilize private health insurance. House Bill 384 seeks to change this reality for Ohioans with diabetes, including everyone within the insulin price limit.

During a February 6th press conference discussing the Insulin Reduction Act, Representative Abdullahi noted “Comparatively, on the international scale, the cost of insulin in America is nearly 10 times the world average” while Representative Hall pointed out the origin of the introduced legislation stemmed from an encounter wherein the two lawmakers discovered the other was also a type-1 diabetic. Both Representatives Abdullahi and Hall touted the Insulin Reduction Act for the meaningful impact it will have on Ohioans with diabetes.

According to the American Diabetes Association, passage of the Insulin Reduction Act would make Ohio the 26th state in the country to cap insulin copays for individuals with diabetes. The below map indicates which states already have a cap on insulin co-payments. States with an existing cap are marked red. A complete list of state policies regarding insulin caps can be found here.

State Insulin Copay Caps

House Bill 384 has garnered bipartisan support, with over two dozen cosponsors. The legislation was assigned to the House Insurance Committee on February 6th, where it awaits further movement.