California Governor Gavin Newsom has announced a new partnership with Civica Rx to offer affordable insulin to Californians starting next year. This initiative, part of the state’s CalRx program, will provide insulin at significantly reduced prices, making it far more accessible to those with diabetes.
Affordable Insulin for Californians
Beginning January 1, 2024, long-acting insulin pens will be available in California pharmacies for just $11 per pen, or $55 for a five-pack. These pens, which are interchangeable with the generic version of Lantus, a commonly prescribed insulin for blood sugar regulation, are priced at a fraction of the current costs. The governor’s office highlighted that Lantus sells to pharmacies for over $92, though consumer prices may vary based on insurance plans.
Newsom’s Bold Move Against High Drug Prices
Governor Newsom framed this initiative as California taking action where the pharmaceutical industry has failed. In a statement, he said, “California didn’t wait for the pharmaceutical industry to do the right thing — we took matters into our own hands.” He emphasized that no Californian should have to choose between paying for insulin and going into debt to survive.
A Long-Awaited Solution
Roughly 3.5 million Californians suffer from diabetes, a condition that requires consistent insulin use. The high cost of insulin has long been a focus for both state and federal lawmakers. Price caps introduced by the Biden administration in 2023, combined with public pressure, have led to a reduction in national insulin prices. The sale of affordable insulin through the CalRx initiative is a major step forward for Californians struggling with the cost of life-saving medications.
The CalRx Initiative
This insulin program is part of the broader CalRx initiative, which Newsom launched with the goal of reducing prescription drug prices across California. Newsom first pledged to address the insulin issue three years ago, and while the project faced delays, the state is now set to deliver on its promise with affordable insulin options. The project also aligns with Newsom’s goal to increase transparency in pricing and ensure equitable access to medications for all residents, particularly those who are uninsured or underinsured.
Support from Civica Rx and State Investments
The state has committed $50 million to contract with Civica Rx, a nonprofit drug manufacturer, to supply the insulin. In addition, the state allocated another $50 million for a planned manufacturing plant in California, though updates on that project have been sparse. Elizabeth Landsberg, director of the state’s healthcare access department, emphasized the program’s commitment to eliminating hidden costs and ensuring access to medications for vulnerable populations.
Additional Efforts to Cap Insulin Costs
Less than a week ago, Governor Newsom signed new legislation that caps out-of-pocket insulin costs for patients at $35, further alleviating the financial burden on those needing the drug. These measures mark a significant move toward improving healthcare accessibility and affordability in the state.