SACRAMENTO, California — California will start selling low-cost insulin in January, becoming the first state in the nation to bypass Big Pharma with its own supply of the expensive diabetes drug and marking a notable win in Gov. Gavin Newsom’s push to rein in health care costs with state-branded drugs.
The insulin pens will be supplied through the CalRx program, an initiative launched under Newsom in which the state contracts with manufacturers to produce generic pharmaceuticals. The pens, which people with diabetes use to control the level of insulin in their bodies, will be the same as other long-acting insulin on the market. They will come with a suggested price for consumers of no more than $55 for a pack of five – a significant discount from current prices.
The announcement establishes California as the vanguard among states searching for ways to keep health care affordable in a system dominated by for-profit companies and underscores the the Golden State’s ability to leverage the scale of its massive economy and buying power. And the insulin supply chain delivers a milestone for Newsom, who early on made CalRx a centerpiece of his administration but until now had little to show for it.
The cost of insulin has come down since it was a major political issue in 2017 when the top manufacturers of the drug – Eli Lilly, Sanofi and Novo Nordisk – were accused in a class action lawsuit of dramatically raising prices each year. A prescription that had cost patients $25 had ballooned to $300, the lawsuit claimed, and politicians latched on to the issue as an example of the pharmaceutical industry run amok. In 2024, the federal government brought a suit against pharmacy middlemen, also accusing them of contributing to the ballooning cost of insulin.
Source: https://www.politico.com/news/2025/10/16/california-becomes-the-first-state-to-sell-insulin-00611163
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