Newsom Vetos Insulin Price Control Bill, Citing Concerns About Long-term Costs

Earlier this year, Governor Gavin Newsom made a significant announcement regarding California’s entry into the insulin manufacturing arena. He vetoed a bill aimed at capping insulin costs at $35, permitting insurance companies to continue charging more.

This legislation sought to eliminate additional expenses for insulin prescriptions, such as co-pays and deductibles, ensuring a 30-day supply cost no more than $35. However, it was not approved by the governor.

Affordability Matters

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The state has inked a $50 million contract with Civica Rx, a nonprofit pharmaceutical entity, to produce insulin bearing the CalRx brand. Remarkably, this state-produced insulin will be available to consumers at an economical price point, offering a 10-milliliter vial for a mere $30.


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Governor Newsom’s rationale for vetoing the bill in question centered on the fundamental principle of addressing the core cost issue. He expressed this perspective in a statement, asserting that CalRx, by tackling the underlying cost, represents a sustainable solution to the problem of exorbitantly priced pharmaceuticals. Conversely, he argued that copay caps only shift the financial burden to consumers, ultimately manifesting as higher premiums in their health plans.

Significant Setback

California Governor Gavin Newsom (then Lieutenant Governor) riding in the Golden State Warriors Parade in Oakland, California 6/12/18.
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State Senator Scott Wiener, another Democrat hailing from San Francisco and the mastermind behind the bill, decried Newsom’s veto as a significant setback. He lamented that this decision would leave tens of thousands of diabetic Californians in an agonizing predicament, torn between securing insulin or affording basic sustenance. Wiener stressed the missed opportunity to provide immediate relief from the relentless surge in medical expenses.

The Importance of Insulin

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Insulin, an indispensable hormone produced by the pancreas, plays a pivotal role in converting sugar into vital energy. Regrettably, individuals afflicted with diabetes do not naturally produce sufficient insulin, and those with Type 1 diabetes rely on daily insulin doses for their very survival.

In a noteworthy legal development, California Attorney General Rob Bonta initiated legal proceedings in January against the dominant insulin manufacturers and promoters in the nation. The lawsuit alleges illegal collusion aimed at inflating insulin prices, shedding light on the pervasive issue of pharmaceutical cost manipulation.

Additionally, in March, the largest insulin manufacturers voluntarily pledged to reduce the prices of their products, signaling a potential shift in the landscape of insulin affordability.

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This article was produced and syndicated by A Dime Saved.