Biden’s $35 Insulin Cap: A Complex Campaign Issue

TL/DR –

President Biden frequently promotes a $35 price cap for insulin for Americans on Medicare, a policy that his reelection team advertises heavily in swing-state airwaves. However, the political and economic impact of this policy is complex, as Biden often overstates what eligible individuals previously paid for insulin and it’s unclear if the number of Americans benefiting from the cap will be substantial enough to influence the election. Many of those benefiting from the price cap already received insulin at reduced prices, were already Biden supporters, or both, while others who need reduced-price insulin cannot access it due to lack of Medicare or private health insurance.

President Biden’s Focus on Insulin Price Caps

President Biden frequently cites insulin prices and proposes a $35 price cap for Medicare beneficiaries. This has been a key message during his speeches, campaign stops, and even non-health-related events and forms a significant part of his reelection campaign’s advertising strategy in key swing states.

While this approach may seem impactful from a political and economic standpoint, matters appear more complex in reality. The President often exaggerates the cost of insulin before the proposed cap, and it’s unclear whether those benefiting from the cap will significantly impact the outcome of the upcoming election.

The Contrasting Realities of Insulin Price Reductions

Many who are currently benefiting from the price cap had already been receiving insulin at reduced prices or were already supporters of Biden. Moreover, those who urgently need low-cost insulin but do not have Medicare or private health insurance cannot benefit from the cap.

Biden’s campaign emphasizes his push for lower insulin costs, contrasting this with his predecessor, Donald Trump, who promised to reduce drug prices during his campaign but took limited action while in office.

The price cap for Medicare recipients was part of the Inflation Reduction Act, initially intended to cap insulin at $35 for all insured individuals. However, congressional Republicans scaled it back in 2022 to apply only to older adults.

The Biden administration also announced agreements with major drugmakers to cap insulin co-payments for those with private insurance. Yet Biden’s assertion that people previously paid up to $400 monthly for insulin is an overstatement. A study found that insured individuals with diabetes paid an average of $452 annually, not monthly.

Incomplete Reach and Calls for Broader Access

The reduced insulin prices don’t reach everyone. For instance, those without health insurance like Yanet Martinez, who lives in Phoenix and supports Biden, only receive lower prices if their income remains below a specified limit. Otherwise, her monthly insulin cost can rise to over $500.

Sen. Raphael Warnock, D-Ga., is sponsoring bipartisan legislation to extend the $35 insulin cap universally, including people without health insurance. Despite the limited reach of the price cap, Warnock lauds the measure for saving lives and money.

The Political Impact of Biden’s Insulin Price Cap

Despite the controversy, the insulin price cap remains a high-performing issue for Biden’s reelection campaign. Poll results show that 59% of U.S. adults trust the Democratic Party over the Republicans (39%) to address health care affordability, according to a KFF poll.

However, just 26% of respondents were aware of the insulin price cap, indicating a potential need for more robust dissemination of information on the measure. Despite this, the Democrats and Biden seem to hold the upper hand on healthcare issues.

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