Federal News
Senate Advances INSULIN Act to Reduce Costs
March 24, 2026
The U.S. Senate, led by Senators Susan Collins and Jeanne Shaheen as co-chairs of the Senate Diabetes Caucus, has introduced the INSULIN Act aimed at lowering insulin costs for Americans, including those with commercial insurance and the uninsured. The legislation proposes imposing out-of-pocket cost caps, reforming commercial pharmacy benefit managers, and promoting biosimilar competition to reduce insulin list prices. This initiative complements existing Medicare insulin cost caps and addresses the significant financial burden of diabetes treatment, which accounts for over $300 billion annually in direct medical costs in the U.S.
- Why this matters: Federal procurement and healthcare stakeholders should anticipate potential shifts in pharmaceutical purchasing and reimbursement policies that may affect contract requirements and pricing structures for insulin and related diabetes care products.
- The focus on biosimilar competition may open opportunities for vendors specializing in biosimilar insulin products to participate in government and commercial supply chains.
- Procurement professionals should prepare for possible new compliance and reporting requirements related to pharmacy benefit management and cost transparency.
- This legislation signals increased federal attention on chronic disease management costs, potentially influencing future healthcare procurement priorities and funding allocations.
We are the long-time chairs of the Senate Diabetes Caucus, and one of our top priorities is to make insulin more affordable. Our INSULIN Act would impose out-of-pocket limits for patients with commercial insurance, tackle commercial pharmacy benefit managers, and ensure that patients are the ones who are benefiting from the savings that they negotiate, and encourage biosimilar competition in order to lower list prices.
— Senator Susan Collins
There are over 40 million people in the United States with diabetes. Over 300,000 of these are children. U.S. families annually face over $300 billion in direct medical costs due to the disease. It is the most expensive chronic condition in the United States, as I'm sure youβre aware, Mr. Chairman, as a physician. And one of the greatest ongoing costs is the daily insulin that people with diabetes need to keep themselves alive.
— Senator Jeanne Shaheen
Agencies
U.S. Senate, Senate Committee on Health, Education, Labor, and Pensions, Senate Diabetes Caucus
Locations
Sources
- Senators Collins, Shaheen Preview INSULI... | U.S. Senator Susan Collins · Collins Senate · Mar 24