Re: History has proven that "light touch" regulation...
T1 diabetic here. Human insulin (Humulin, Novolog or Novorapid, …) still is extremely cheap (thank you, Dr Banting and Best). What has gone up immensely are the more recent long-acting insulins (i. glargine a/k/a Lantus, i. detemir a/k/a Levemir, i. degludec) and rapid-acting insulind ("pump insulins": i. lispro = Humalog, i. glulisine = Apidra, i. aspart = Novorapid) which for the most part are still under patent protection. A few notes:
1. Insulin lispro (Humalog) has come off patent protection in 2015. Lilly is marketing a generic at half the price of brand-name Humalog; personally, I cannot wait for Teva Pharma or some other generics giant to mix things up.
2. Pump users are perfectly able to maintain adequate BG control on human insulin (Humulin R, Actrapid); rapid-acting insulin makes some things a little easier, like having to plan a work-out only two hours in advance instead of four. Walk into any Walmart, buy a vial of "Relion" human insulin for $25. Oh, and what you get is original Novo Nordisk Novolin, nothing cooked up in some backyard lab.
3. Long-acting insulin (Lantus, Levemir) is easily replaced by three injections of NPH. Again, that is mostly a question of convenience.
4. The argument "But the fiends abroad only pay $40 per vial" doesn't wash. In Austria, the list price for a vial of Apidra (insulin glulisine, a rapid-acting insulin made by Sanofi-Aventis) is about $44 (EUR 38.50); in the US, the cash price is about $310. If you were to force the manufacturer to sell in its biggest market for the Austrian price, drug development would likely grind to a halt. Currently, insulin and other blockbuster drugs cross-subsidize development of new antibiotics necessitated by bacterial drug resistance.
5. The only people in the US who pay cash prices are the uninsured and badly-insured. (We have that, too; here, the saying is that insurance will pay "not enough to live, yet too much to die".) Just require that the cash price must equal the lowest price negotiated with any insurance (including Medicare) or pharm benefits manager, and the problem goes away.
6. (Unrelated to insulin) The same fix would apply to, say, surgery; my excellent hip repair in the US came with a six-digit bill; insurance paid about 25%, and that was that. No, quantity discounts cannot be responsible for insurance pricing; after all, BC/BS cannot guarantee that it will send N patients to Dr. Bruckner.
To summarize: There are options other than spending $1000/month.