Gov. Newsom announces plans to lower price of insulin

Audio By Carbonatix

(The Center Square) – Gov. Gavin Newsom announced Thursday he is rolling out an effort to lower the price of insulin to $11.

CalRx, the state-run program that aims to lower the cost of insulin and other medications, would keep costs low by using drugs that are cheaper to make and more affordable for diabetes patients.

“On Jan. 1, we will be the first state to provide not subsidized insulin, but lower-cost insulin,” Newsom said. “This is part of a new initiative to fundamentally lower health care costs, not spread health care costs.”

The maximum cost of a five pack of 3 milliliter long-acting Glargine insulin pens would cost $55, according to the CalRx program. Those pens will be available at that price on Jan. 1, 2026. CivicaRx, a nonprofit pharmaceutical company that makes generic drugs, will manufacture the Glargine insulin pens available through CalRx. Glargine is interchangeable with the common insulin brand Lantus, according to Allan Couckell, the chief government affairs and public policy officer of CivicaRx.

A CalRx fact sheet says that the state invested $50 million in the insulin program. The investment also aims to develop low-cost, fast-acting aspart and lispro insulin medications.

According to the American Diabetes Association, patients with an average out-of-pocket cost of more than $50 a month to pay for insulin are more likely to experience gaps in insulin access. Those who have been diagnosed with diabetes and children who grow up in families with diabetes said on Thursday that affordable insulin makes it possible to stay alive.

“I was once out of insulin for five hours, and that put me in the ICU for two weeks,” said Niketa Calame-Harris, a diabetes patient and advocate for affordable insulin. “Seeing the dollar signs drop in front of insulin costs, which is literally the vial of life for millions of children and adults living with diabetes, gives me hope in humanity.”

Other medications offered at a lower price through CalRx include Naloxone, the life-saving opioid overdose medication. That drug is listed at $22.50 for a twin pack. The program also aims to later offer albuterol inhalers and single-use disposable spacers in California’s schools. Newsom also said on Thursday he wants to see CalRx offer low-cost diapers to families with infants.

While this program will make insulin more affordable for many, some policy experts said this move comes a little bit late.

“By government doing it, you’re talking about some sort of nationalization or socialization. This is government interfering into the marketplace. That horse has already left the barn,” said Wayne Winegarden, senior fellow and director of the Center for Medical Economics and Innovation at Pasadena-based Pacific Research Institute.

“He’s very much late on this issue because a lot of the cost things have already been addressed," Winegarden told The Center Square.

According to CalRx, uninsured or underinsured patients often pay thousands of dollars a year in insulin costs, paying the retail price of $300 or more per vial.

Pinning down the average cost of insulin is difficult, Winegarden said. According to GoodRx, a prescription pricing website, insulin can cost anywhere from $3 to $538, depending on the brand. However, little to no public data exists to determine the average cost of insulin nationally.

“Pricing is not transparent at all,” Winegarden said. “If I wanted to know the price of Coca-Cola, I could find that out there easily, but I can’t find that out for drugs. That’s problematic.”

Sen. Tony Strickland, R-Huntington Beach, voiced support for efforts to make insulin more affordable, but highlighted other affordability issues that make life in California difficult for many.

“Gov. Newsom needs to tackle the major issue in California in the cost of living and the affordability crisis here in the state. This just scratches the surface,” Strickland told The Center Square Thursday afternoon.

Calls made by The Center Square to Newsom’s office on Thursday for more comments were not returned. Phone calls and emails to public health departments across the state were also not returned.