California to Launch Affordable Insulin Program January 1st

California will begin selling affordable insulin under its own “CalRx” label on January 1st, offering a significant cost reduction for millions of residents managing diabetes.

The state partnered with nonprofit Civica to develop the lower-cost insulin, investing $50 million in the project since 2023. Insulin pens will be available at a recommended price of $11 per pen, or a maximum of $55 for a five-pack, and will be interchangeable with glargine, the generic alternative for once-a-day injections. Governor Gavin Newsom announced the initiative today at a news conference in Los Angeles, stating, “You don’t need a new prescription. It’s access on the basis of affordability.” This move comes as insulin prices have soared in recent years, creating a financial burden for many Americans.

Approximately 3.5 million Californians – and 38 million Americans nationwide – have diabetes, according to the American Diabetes Association. The program is part of a broader effort by California to lower prescription drug costs, including a similar initiative to make the overdose medication Naloxone more accessible. Health Access California, a statewide consumer health care advocacy group, praised the announcement, noting it will bring much-needed relief to patients. State analysts have cautioned, however, that increased competition could potentially lead other manufacturers to reduce drug availability. You can learn more about health initiatives in California on our site.

State lawmakers approved $100 million for the project in 2022, with funds allocated for developing insulin types and investing in a manufacturing facility. Officials anticipate the program could save patients between $2,000 and $4,000 annually, and generate substantial savings for the state’s publicly funded health plans.

The state will continue to monitor the program’s impact and pursue additional solutions to address prescription drug costs, according to Governor Newsom’s office.