Boehringer Ingelheim has unveiled an initiative to limit the out-of-pocket expenses for eligible patients to $35 per month for its entire range of inhaler medications, starting June 1, 2024.
The initiative covers several inhaler products, including Atrovent HFA, Combivent Respimat, Spiriva HandiHaler, Spiriva Respimat (in two doses), Stiolto Respimat, and Striverdi Respimat. Boehringer Ingelheim also said it plans to reduce the list prices of some inhalers and continue to offer discounts and rebates to insurers and pharmacy benefits managers.
Pharma manufacturers have long been pushed for more transparency on their drug pricing, with efforts from government agencies to investigate their practices. In 2019, Eli Lilly was hit with a subpoena from the New York Attorney General’s Office over the pricing and sales of its insulin treatment, and asked for more transparency on pricing and the obstacles to providing more affordable insulin.
Lilly and other companies like Sanofi, have since announced price capping initiatives with their insulin products, offering monthly supplies around the $25 to $35 range.
But in 2022, the Biden administration passed the Inflation Reduction Act (IRA), which aims to reduce the federal deficit, lower prescription drug costs, and promote domestic energy production by requiring drugmakers to pay rebates if drug prices increase faster than inflation. The first 10 drugs selected for negotiation, including widely used medications such as Eliquis, Jardiance, and Xarelto, were revealed by the Centers for Medicare and Medicaid Services last August.
These drugs are used by over 8 million Medicare beneficiaries and are considered high expenditure without generic competition. Medicare plans to negotiate prices for up to 60 drugs in the next four years, with the potential for more annually thereafter.
Pharma industry has responded with nine lawsuits against these negotiations. PhRMA, the industry's largest trade group, criticized the process as politically motivated and opaque, warning of negative consequences for patients.
