Evaluating Colorado's Insulin Affordability Program: A Step Towards Equitable Diabetes Care
Managing diabetes is a challenge for millions of Americans. In Colorado, nearly 300,000 people have diabetes, and about one in three adults has prediabetes. For many, insulin is essential to effectively manage the disease, yet high co-pays for insulin medications often make it unaffordable. In response to rising costs, in January 2020, Colorado was the first state to implement an insulin co-pay cap with a goal to reduce out-of-pocket costs and improve health. To understand the impact of this legislation on cost, access, and health outcomes, researchers from Texas A&M University, University of Alabama at Birmingham, and the Department of Health and Human Services analyzed cost and utilization data from the Colorado All Payer Claims Database (CO APCD).
Results of the study were recently published in Health Affairs, and show positive results. Average out-of-pocket costs for insulin dropped by about 40% in the two years following the law's passage. Notably, annual savings were highest for children and adults aged 18 to 34, and rural patients saw greater savings than those in urban areas. The number of prescriptions and days supplied also increased, indicating improved adherence to prescribed insulin therapy.
Benefit to Coloradans
The CO APCD is a powerful source of information that is used by lawmakers and others to shape policy, implement policy, and evaluate the impact of legislation. The original intent of the legislation was to increase access to insulin and improve health through medication adherence, and this research project helped confirm that the law is producing the intended results. By analyzing trends across different sociodemographic groups, the researchers were also able to identify disparities and determine if the policy had equitable effects across diverse populations.
The Road Ahead
The findings of this research serve as a foundation for future policy decisions and potential expansions of affordability programs for other chronic conditions for people in Colorado and across the nation. The lessons learned from Colorado's insulin affordability program can help shape a future where no one has to choose between their health and financial stability.