California will become the first state to offer its own low-cost insulin, starting January 1, 2026, Governor Gavin Newsom announced Thursday. The state-backed program will provide insulin glargine pens, a long-acting insulin used for diabetes management, at a maximum price of $55 for a five-pack, averaging $11 per pen. Pharmacies can purchase these pens for $45.
Governor Newsom emphasized the importance of this initiative, stating, “California didn’t wait for the pharmaceutical industry to do the right thing — we took matters into our own hands.” He added that no Californian should have to ration insulin or incur debt to stay alive. The CalRx insulin pens are interchangeable with Lantus, another long-acting insulin, and are part of the state’s broader effort to reduce prescription drug costs.
The program stems from Newsom’s 2019 executive order aimed at lowering drug prices and improving price transparency. According to KTLA, California previously launched a similar initiative for naloxone, an opioid overdose reversal medication. Newsom has also signed legislation capping insulin copays at $35 per month.
The state’s partnership with Civica Rx, a nonprofit drug manufacturer, is key to this initiative. The collaboration, announced in 2023, involves producing insulin at a lower cost, with Civica Rx building a manufacturing plant in Virginia. The state has allocated $50 million to this effort and plans to eventually produce other types of insulin.
CalMatters reported that this move comes after years of high insulin prices, which have been a significant political issue. The program aims to make insulin more affordable for the roughly 3.5 million Californians with diabetes.
Politico noted that this initiative underscores California’s ability to leverage its economy to make health care more affordable. The CalRx program is also exploring options for other medications, including asthma and abortion medications.
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