California will make its own insulin to increase affordability
California Governor Gavin Newsom announced that the state of California will manufacture its own insulin to increase affordability for the life-saving drug.
Newsom signed the state’s budget, allocating $100 million toward the action. While $50 million will go toward the development of low-cost insulin products, another $50 million will go toward a California-based insulin manufacturing facility.
The plan will allow California to offer insulin at a cheaper price, “closer to cost,” Newsom said in a video announcement on Twitter July 7.
“Nothing, nothing epitomizes market failures more than the cost of insulin,” Newsom said. “Many Americans experience out-of-pocket costs anywhere from $300-$500 per month for this life-saving drug.”
Newsome has long believed California should make its own prescription drugs to provide more affordability to its residents. The governor signed an executive order on his first day in office to put the Golden State on track to manufacture its own products. According to the Centers for Disease Control and Prevention (CDC) 37.3 million Americans, or 1 in 10, have diabetes.
Insulin prices in the U.S. have skyrocketed over the past several years, and many efforts have been made to offer lower-cost insulin products, which are everyday, essential medicines for people with diabetes. The average list price for a unit of insulin in Canada was $12, compared to $98.70 in the U.S., according to a 2020 RAND study. The astronomical prices in the U.S. have led some to look elsewhere for the medications, including Craigslist, while others have been forced to ration their supply and risk their health. Recently, nonprofit drug maker Civica Rx announced it would make insulin for $30 per vial, available as soon as 2024.
The Centers for Medicare and Medicaid Services (CMS) launched a new Medicare Part D model that capped insulin costs at a $35 copay for a 30-day supply. CVS Health also debuted an insulin program with no out-of-pocket costs the same year. Express Scripts and Cigna announced plans for a lower-cost insulin program in 2019, as well. These plans came after lawmakers shined a light at the rising cost of insulin across the country. Drug maker Eli Lilly introduced a half-price insulin program, but obtaining the lower-cost products has been reportedly tough.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."