California will begin manufacturing its own low-cost insulin with a nearly approved budget that sets aside $100 million for its development.
Gov. Gavin Newsom made the announcement on Thursday in an effort to make insulin more accessible after years of rising prices, subjecting those in need to out-of-pocket costs ranging from $300 to $500 a month.
“Nothing epitomized market failures more than the cost of insulin,” Newsom said. “California is now taking matters into its own hands.”
Newsom said $50 million will go toward developing low-cost insulin products while $50 million will go toward creating a manufacturing facility “that will provide new, high-paying jobs and a stronger supply chain for the drug”.
“In California, we should not go into debt to receive life-saving medication,” Newsom said.
Newsom did not provide a timeline for this initiative but said the state plant to make it “at a cheaper price, close to at-cost" that is available to all.
Insulin is a hormone that controls the amount of glucose in your bloodstream. A lack of insulin plays a key-role in developing diabetes.
In March, the House of Representatives voted Thursday to approve the Affordable Insulin Now Act, which would limit the cost-sharing of insulin under private health insurance and Medicare. NPR reported that the legislation would cap insulin prices at either $35 a month or 25 percent of an insurance plan's negotiated price.
According to the Centers for Disease Control and Prevention, over 37 million Americans have diabetes and face its consequences. The American Diabetes Association reported that approximately 3,209,418 people in California have diagnosable diabetes, and an additional 884,000 people have diabetes but do not know it.
