Insulin Supply Chain is ‘Dysfunctional,’ Claims ADA Official

Increased transparency in the supply chain is the key to lowering insulin prices, patient advocates and health professional told members of the House Energy and Commerce Committee.

William Cefalu, chief science officer of the American Diabetes Association (ADA) described the insulin supply chain as “dysfunctional” and called for a system that does not rely on high list prices and rebates. If there are discounts and rebates, they must make a price difference at the pharmacy counter for consumers, he said.

The key players in the insulin supply chain—drugmakers, wholesalers, pharmacy benefit managers, insurers and pharmacies—need to open a window to their pricing methods, he said.

He offered the lawmakers three other ADA policy recommendations to help lower insulin prices: lower or take away patient cost-sharing for the drug; increase access to health care coverage for diabetes; and streamline the approval process for biosimilars.