Comment California will begin making its own affordable insulin as part of an effort to combat high drug prices for a life-saving drug that has become unaffordable for some Americans living with diabetes, Gov. Gavin Newsom announced Thursday ( D). Newsom said in a video posted on Twitter that $100 million from the recently signed state budget for 2022-2023 will go to California to “contract and make our own insulin at a cheaper price, close to cost and to dispose of it. to everyone.” Half of the $100 million would go toward developing a “low-cost” insulin, Newsom said. The other $50 million would go to a facility in the state to produce insulin that would “provide new, high jobs and a stronger supply chain for the drug.” “California is going to make its own insulin,” Newsom said in the video. “Nothing sums up market failures more than the cost of insulin. Many Americans face costs of $300 to $500 a month for this lifesaving drug. California is now taking matters into our own hands.” It is not clear when the government insulin will be available or how much it will cost. A spokesman for the governor’s office did not immediately respond to a request for comment early Friday. California is going to make its own insulin. It is simple. People should not be charged to get life saving drugs. pic.twitter.com/yB4mpGjtQO — Gavin Newsom (@GavinNewsom) July 7, 2022 The announcement from California comes as top senators in Congress recently introduced a bipartisan bill to curb the high cost of insulin, which has been decried for years by advocates, doctors and President Biden. The bill from Sens. Jeanne Shaheen (DN.H.) and Susan Collins (R-Maine) last month would have put a $35 monthly cap on the cost of insulin for patients with private insurance as well as those enrolled in Medicare , although they do not provide the same protection to the uninsured. The bill also seeks to make insulin more affordable by cracking down on prior authorization requirements that can force patients to overcome hurdles to get insurers to help pay for the drugs. Senators unveil bipartisan plan to cap insulin prices Despite a pledge by Senate Majority Leader Charles E. Schumer (DN.Y.) to bring the insulin pricing bill to a vote, the legislation has struggled to pass the floor, as some Republicans had previously criticized the idea of a maximum $35 limit as a price control. More than 37 million Americans have diabetes, according to the Centers for Disease Control and Prevention, representing about 11 percent of the U.S. population. Although more than 7 million Americans with diabetes depend on insulin every day, some Americans have struggled to keep up with the drug’s rising costs, according to Yale researchers. Since diabetics typically use two or three vials of insulin a month, the cost can reach more than $6,000 a year for people without insurance, inadequate coverage, or high deductibles. Some of the list prices for the drug can range from $125 to more than $500. Humalog, a brand-name insulin drug that cost about $21 a vial when it was launched by Eli Lilly in 1996, was listed late last year at about $275 in the United States. A 2019 study published in the medical journal JAMA Internal Medicine found that the drug’s high cost had caused an estimated 1 in 4 people with diabetes to skip doses or rations. Black, Latino and Native American patients, who are less likely to have insurance or the level of insurance to cover prices, are disproportionately affected by high costs, research shows. California’s push to make its own insulin isn’t the first time a state or group has tried to manufacture the drug in response to costs. Colorado Gov. Jared Polis (D) signed legislation in 2019 to cap insulin copayments at $100 a month for those patients with private insurance. In response to the high costs this year, Civica Rx, the nonprofit company for a consortium of major U.S. hospitals, said in March it plans to make and sell generic versions of the insulin for no more than $30 a vial and $55 for five injection pen cartridges. Civica Rx said it expects to begin selling insulin in 2024, once it finishes building a 140,000-square-foot pharmaceutical plant in Petersburg, Virginia — and if it wins approval from the Food and Drug Administration. A hospital group has a plan to bypass Congress’s refusal to lower insulin costs Newsom signed the $308 billion state budget into law on June 30. The budget included a $17 billion relief package to provide “inflation relief” checks of up to $1,050 to residents to address concerns about the nation’s higher average gas prices. The plan will also suspend California’s sales tax on diesel fuel and provide additional assistance for residents who need help with rent and utility bills, according to lawmakers. California has the highest number of new diabetes cases of any state, according to the governor’s office. Minorities, the elderly, men and the poor are most affected by diabetes in California, according to the state. The governor said in a press release last week that the budget for the $100 million insulin investment is available for “the development and manufacture of low-cost biosimilar insulin products to increase the availability and affordability of insulin in California.” “In California, we know that people shouldn’t be charged to get lifesaving drugs,” Newsom said in the video.
