California to Offer State-Branded Insulin at $11 per Pen

California Governor Gavin Newsom announced on October 16, 2023, that starting January 1, 2024, residents with diabetes will be able to purchase state-branded insulin at a significantly reduced price. The long-acting insulin pens will retail for just $11 per pen, or $55 for a five-pack, making this a groundbreaking initiative aimed at improving access to essential medication.

The newly available insulin pens are designed to be interchangeable with glargine, a generic version of Lantus, which is a widely used daily injection that helps regulate blood sugar levels. Current market prices for Lantus exceed $92 for a similar quantity, though costs may vary for consumers depending on their insurance plans.

In a statement released early Thursday, Newsom emphasized the urgency of addressing insulin affordability. “California didn’t wait for the pharmaceutical industry to do the right thing — we took matters into our own hands,” he remarked. “No Californian should ever have to ration insulin or go into debt to stay alive.” This statement reflects the ongoing struggle faced by many in California, where approximately 3.5 million residents are living with diabetes, according to the American Diabetes Association.

The introduction of affordable insulin is part of the state’s CalRx initiative, which aims to lower prescription drug prices for Californians. This announcement follows a commitment made by Newsom three years earlier to tackle the escalating costs of insulin. The first vials of insulin are set to be available two years later than initially promised, indicating the complexities involved in bringing this project to fruition.

In a bid to facilitate this initiative, California has allocated $50 million to contract with Civica Rx, a nonprofit drug manufacturer based in Utah. Additionally, the state earmarked another $50 million to establish a manufacturing plant within California, although updates on that project have not been provided.

Elizabeth Landsberg, director of the state health care access department overseeing the CalRx initiative, stated that the program is dedicated to “transparent pricing, eliminating hidden costs, and ensuring equitable medication access for uninsured, underinsured, and vulnerable residents.” This commitment underlines the state’s effort to address systemic barriers in healthcare access.

Just days before this latest announcement, Newsom signed legislation that caps out-of-pocket insulin costs for patients at $35 per month. This legislative action is part of broader efforts at both state and federal levels to address the high costs of life-saving medications in the U.S.

The introduction of state-branded insulin at a reduced price marks a significant step in California’s approach to healthcare, reflecting a growing trend towards making essential medications more accessible to those in need.