Newsom unveils $11 state insulin for Californians

By Kristen Hwang | CalMatters

Starting next year, Californians with diabetes will be able to purchase state-branded insulin at steeply reduced prices, Gov. Gavin Newsom announced Thursday, Oct. 16.

Long-acting insulin pens will be available at pharmacies for $11 per pen — or $55 for a five-pack — beginning Jan. 1.

The pens are interchangeable with glargine, the generic alternative for Lantus, a once-a-day injection that regulates blood sugar. An equivalent amount of Lantus sells to pharmacies for more than $92, according to data compiled by the governor’s office, but consumers may pay a different price based on their insurance.

“California didn’t wait for the pharmaceutical industry to do the right thing — we took matters into our own hands,” Newsom said in a statement released at 3 a.m. Pacific time. “No Californian should ever have to ration insulin or go into debt to stay alive.”

Roughly 3.5 million Californians have diabetes, according to the American Diabetes Association.

Lawmakers at the state and federal level have focused in recent years on the high cost of insulin, a life-saving drug used by diabetics. Price caps set by the Biden administration in 2023 as well as public pressure have driven down the cost nationally, according to health economists.

The sale of insulin is part of the state’s CalRx initiative aimed at lowering prescription drug prices for Californians. Today’s announcement comes three years after Newsom announced the state would tackle the cost of insulin.  The first vials of insulin will be for sale two years after the governor’s promised delivery date of 2024.

Newsom originally pledged that the state would spend $50 million to contract with Civica Rx, a nonprofit drug manufacturer headquartered in Utah. The state earmarked another $50 million to build a manufacturing plant in California, but has given no updates on that project.

In a statement, Elizabeth Landsberg, director of the state health care access department that oversees CalRx, said the program was “committed to transparent pricing, eliminating hidden costs, and ensuring equitable medication access for uninsured, underinsured, and vulnerable residents.”

Less than a week ago, Newsom signed legislation capping out-of-pocket insurance costs for insulin at $35.