California Moves to Produce Its Own Supply of Insulin
Gov. Gavin Newsom of California announced last week that the state will begin manufacturing its own low-cost insulin.
“Nothing epitomizes market failures more than the cost of insulin,” Newsom said in a video announcement.
According to Newsom, many Americans experience out-of-pocket costs for insulin ranging from $300 to $500 per month.
The budget that Newsom signed sets aside $100 million to create the state’s own supply at a cheaper price.
Newsom said that $50 million will go towards developing the low-cost insulin products, and $50 million will go towards a California-based insulin manufacturing facility that will provide new, high-paying jobs and a stronger supply chain for the drug.
California is not the only state to try to lower the costs of insulin. In 2019 Colorado set the first cap on private insurance co-payments for buying insulin.
The move by Newsom comes on the coattails of the Improving Needed Safeguards for Users of Lifesaving Insulin Now Act, which was introduced by Sens. Jeanne Shaheen, D-N.H., and Susan Collins, R-Maine, to place a $35 monthly cap on the cost of insulin for insured patients and those enrolled in Medicare.
Three major drug companies — Eli Lilly, Novo Nordisk and Sanofi — produce most of the insulin in the U.S. and have drastically increased the price over the last decade.
Between 2012 and 2016, the average list price of insulin nearly doubled. The price of an average 40-day supply of insulin rose from $344 in 2012 to $666 in 2016, according to data from the Health Care Cost Institute.
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