California to sell insulin for $30 per vial in 2024

Gov. Newsom said the state would sell 10-milliliter vials of insulin for $30. Such vials typically cost $300.

Published: March 20, 2023 5:30pm

Updated: March 20, 2023 11:00pm

(The Center Square) -

California has entered a partnership with a drug maker to produce more affordable insulin for its residents, Gov. Gavin Newsom announced.

In a press conference near Los Angeles, Newsom said the state would sell 10-milliliter vials of insulin for $30. Such vials typically cost $300.

The state is partnering with Civica Rx, a nonprofit drug company, to produce the insulin. It will likely be available to the public next year.

"Thank you for being willing to disrupt the market," Newsom said at the press conference. "Thank you for being willing to save lives without fear of failure, but more importantly, without money being your motivator."

Newsom assured people that this plan is not just a price control that will shift costs onto others. He said it would save consumers money without increasing costs on other people.

"Do not be misled," he said. "These companies that all of a sudden are jumping over each other to rush in this direction, they're just providing discount cards. Those costs are being borne by the plans. Those costs are being socialized and shifted to everybody else."

"What this does is a game changer," he added. "This fundamentally lowers the cost. Period. Full stop."

The announcement came after Newsom announced in July 2022 that he approved a budget allocating $100 million for the state to produce insulin. Of the $100 million, $50 million will go to developing low-cost insulin, while the rest will go towards constructing the manufacturing facility.

The proposal still needs approval from the U.S. Food and Drug Administration. However, the state expects that it will get the green light. Additionally, Civica needs a California-based manufacturing facility to produce insulin.

Under the plan, Californians will get generic insulin at pharmacies or via mail-order pharmacies without a prescription.

California's contract with Civica will last 10 years. It will begin when the company makes its first insulin delivery.

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