Has Andy Slavitt gone full socialist? And what on earth does that mean for insulin prices?
If you’re an avid follower of #healthpolicytwitter, you may have seen a pretty head-turning statement from former CMS Administrator Andy Slavitt: “Yes, I went full socialist.”
The eyebrow-raiser came after Slavitt endorsed a plan to nationalize insulin and make it a “public good” — and when I caught up with Slavitt for a brief interview, he didn’t back down. He made the argument that insulin is an essential part of life for people with type 1 diabetes, much like water. “We wouldn’t sell bottled water at $80 a bottle,” he told me. He also isn’t buying the argument that tweaks around the edges can solve the insulin affordability issue. Slavitt emphasized that the rising price of insulin was “ripe for a bold solution,” and he was quick to differentiate the drug pricing issues around insulin from “big problems” that “require more complex solutions.” (He brought up the price of CAR-T drugs as a more complex problem.)
Such a statement likely sent shivers down the spine of drug pricing lobbyists, who have done their best to steer congressional lawmakers toward tweaks around the edges rather than sweeping changes to the way America prices drugs. Combine this with the fact that Slavitt has said he’s brought up nationalization with congressional lawmakers, and you have a pretty scary situation (for drug makers, that is).
The eyebrow-raiser came after Slavitt endorsed a plan to nationalize insulin and make it a “public good” — and when I caught up with Slavitt for a brief interview, he didn’t back down. He made the argument that insulin is an essential part of life for people with type 1 diabetes, much like water. “We wouldn’t sell bottled water at $80 a bottle,” he told me. He also isn’t buying the argument that tweaks around the edges can solve the insulin affordability issue. Slavitt emphasized that the rising price of insulin was “ripe for a bold solution,” and he was quick to differentiate the drug pricing issues around insulin from “big problems” that “require more complex solutions.” (He brought up the price of CAR-T drugs as a more complex problem.)
Such a statement likely sent shivers down the spine of drug pricing lobbyists, who have done their best to steer congressional lawmakers toward tweaks around the edges rather than sweeping changes to the way America prices drugs. Combine this with the fact that Slavitt has said he’s brought up nationalization with congressional lawmakers, and you have a pretty scary situation (for drug makers, that is).
Slavitt acknowledged, too, that his embrace of nationalization is a negotiating position. (Translation: It’s not happening any time soon.) “‘All things should be on the table’ is the way you should interpret my suggestion,” Slavitt said. “I think there has to be a credible threat to the industry.” He told me he isn’t pushing specific legislation that would nationalize insulin at this point. (And per my research, no such bill even exists right now, though Massachusetts Democrat Sen. Elizabeth Warren has a bill that would direct the U.S. government to make its own generic drugs.)
“What I’m trying to add to the dialogue is a sense of urgency,” he said.
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