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In 2020, the California legislature set up CalRx, a signature program for Governor Gavin Newsom which he envisioned as a way to reduce ever-increasing health care costs by cutting Big Pharma out of the process. CalRx was finally funded in 2022, and by the next year the state had contracted a nonprofit manufacturer to produce long-acting insulin. After a couple years in development, CalRx has announced that starting in January they will be selling insulin pens to pharmacies for $45 per five-pack, who in turn will make the packs available to patients with a suggested retail price of no more than $55 a pack. What’s the comparison to packs offered by Big Pharma companies? Anywhere from $89 to $411. Big Pharma, working for the profits; Big Govt, working for the people.
Rx to the rescue: The insulin pens will be supplied through the CalRx program, an initiative launched under Newsom in which the state contracts with manufacturers to produce generic pharmaceuticals. The pens, which people with diabetes use to control the level of insulin in their bodies, will be the same as other long-acting insulin on the market. They will come with a suggested price for consumers of no more than $55 for a pack of five — a significant discount from current prices.
Doing the right thing: “California didn’t wait for the pharmaceutical industry to do the right thing — we took matters into our own hands,” Newsom said in a statement announcing the new drug. “No Californian should ever have to ration insulin or go into debt to stay alive — and I won’t stop until health care costs are crushed for everyone.” The announcement establishes California as the vanguard among states for ways to keep health care affordable in a system dominated by for-profit companies and underscores the Golden State’s ability to leverage the scale of its massive economy and buying power.
The scrooges making our medicine: The cost of insulin has come down since it was a major political issue in 2017 when the top manufacturers of the drug — Eli Lilly, Sanofi and Novo Nordisk — were accused in a class action lawsuit of dramatically raising prices each year. A prescription that had cost patients $25 had ballooned to $300, the lawsuit claimed, and politicians latched on to the issue as an example of the pharmaceutical industry run amok. In 2024, the federal government brought a suit against pharmacy middlemen, also accusing them of contributing to the ballooning cost of insulin.
A new deal: Under the CalRx deal, pharmacies in California will be able to purchase the 5-pack of insulin pens for $45 and sell them to patients at the suggested retail price of $55. Similar products from name brand companies cost pharmacies between $89 and $411, according to state figures.
Naloxone is next: Through CalRx, the state has also contracted to provide a cheaper version of the naloxone, which can reverse an opioid overdose. And earlier this year Newsom announced plans to work on bulk-purchasing asthma medication. He has also floated the idea of using CalRx to either produce or stockpile abortion medication.
Damn, between this and California recently banning loud ads on streaming platforms (ok, less life and death but still important!) I’m feeling downright nostalgic for my home state! As the fifth fourth largest economy in the world, this is exactly the kind of ballsy move California should be making. To paraphrase Newsom (to exaggerated effect), we’re all gonna die waiting for Big Pharma to do the right, humane thing. Even when it comes to lifesaving medicine. So that’s why we need government to advocate on our behalf rather than try to kill us.
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- California Governor Gavin Newsom talking to reporters prior to the 2024 presidential Debate at the Pa Convention Center in Philadelphia, Pa on 09/10/2024 .,Image: 906888173, License: Rights-managed, Restrictions: , Model Release: no, Credit line: William T. Wade Jr./Photography/Avalon
Photos credit: Janet Mayer/INSTARimages.com, Avalon.red, Getty
Good for California!!
I’m going to contact my Washington State legislators and Governor, and ask them to team up with Cali to make the same thing happen here. Maybe we can get Oregon (go Antifa Frogs!) in on the deal too.
With our federal government in the hands of fascist grifters, it’s past time for the States to step up and leverage the ability to manage healthcare problems for our own residents.
The deeper we slide into late-stage capitalism—and the tighter oligarchs grip their power—the more we’re going to need non-traditional actors stepping in to handle responsibilities our institutions are abandoning. This is exactly where well-funded progressive states can make real progress by embracing socialized models in healthcare. And honestly, I’d love to see that approach extended to education and technology as well—especially treating AI like a publicly owned utility.
THIS. 🎯
I know he’s not perfect but Gavin Newsom is one of the few breaking through the maga doomscape right now. His tweets trolling Trump are inspired. He was also instrumental in the fight for same-sex marriage, which he made legal in SF when he was mayor. That was a tipping point that led to its national recognition.
Gavin Newsom wasn’t someone I had on my list after that fateful outcome last year in November.
But he’s been growing on me.
While he’s not perfect, he’s better than I thought he’d be — and the epic trolling made me a huge fan.
Things like the insulin price cap or the Prop50 initiative prove he can also do substantial.
He’s always been substantial and not just a pretty face. He’s crazy smart. Alas like most politicians he’s got his special interests, but I really think he’s rising to the moment.
This is fantastic news!!! What win for the people of Cali.
Maybe they should socialize healthcare in their state…
As a Californian resident, I love all of this. I hope that CA over time continues to build a compact with Oregon, Washington, and Hawaii. That would help to scale health care cost. My only fear is that people from red states like Arizona will come and avail themselves to our social services like they always do.
As a Californian, I’m so grateful for his leadership. I really appreciate his ability to champion democratic and liberal policy ideas. When he’s making the case on behalf of Californians, he clearly and powerfully lays out the reasons why. The Democratic party really needs more people that bring his fearless energy with sharp verbal skills. Communication style is so important.
He also gets big things done, like this program. I want this for all Americans.
Insulin is always one of the things that comes to mind for me when I think about the healthcare system in the US, you can die because you contract diabetes and you’re poor. I know that applies to all the illnesses but for some reason diabetes stands out to me.
I have mixed views on pharma companies, on the one hand they have to invest a ton into R&D for things that never see the light of day so I get that they need the money to cover those costs but at the same running then as for-profit listed corporations feels so, so, wrong. The level of greed in todays business world seems to have reached new heights and it’s frightening. Everything is built around shareholder value and here in the UK we’ve seen how well that worked out with privatising all our water companies.
Yes, R&D can be expensive, but even when it’s not, pharmaceutical companies still price gouge. Insulin formula was given to them for free, and they are still charging $411 for 5 vials?
They’ve shown time and time again they cannot be trusted not to price gouge.
I share your concerns about water. A Saudi company came in and cleared out all the ground water in an area of Arizona. It’s like the movie “there will be blood” but water instead of oil. I fear this is our future.
So, that’s a bit of a misconception about how much pharma invests in R&D in the US. Most of that investment is actually tax dollars through government grants (like from NIH) through partnerships with universities. There’s been a lot of research on uncovering this. The one thing I will say for pharma is that right now, they are the only ones still investing big money in health equity research, expanding clinical trials to rural and underrepresented communities of color and women. It’s a win win for them….they get a diverse clinical trial population to better test their drugs, and folks usually left out get access to cutting edge health care.
Go, CA! 😍
Wonder whether we can expand this to include all sorts of other medications, products, and services? Before you know it, we’ll have a government that takes care of its people!
It’s a little depressing that it took FIVE years from launch of the program, to have something to show for it, even more depressing that, even as a CA resident, I had never heard of CalRx. Let’s hope future progress is faster and louder.
Red states won’t do this- b/c big pharma lobbyists will pay them not to.
Corrupt bigots do not care if their constituents die.
B/c their real constituents pay them real money.
Our Governor Dreamboat, bless his heart.
We should be talking to Oregon, Washington and Hawaii (natch), as well as New Mexico, Colorado (move it or lose it Utah) and Nevada about secession from this “USA” and form our own perfect union.
Hey. New Jerseyer here. Can we join! Pretty please??
Absolutely! The USA would never survive the economic losses if CA, NY/NJ were to secede. We are the bloodline of this country. We need to find a way to bring IL along with us.
Leave the rest of fly over country and the south to the jesus freaks and racists.
Yes, Cascadia! Except Hawaii gets to be it’s own country since their queen was imprisoned and forced to cede the islands. But we’ll be their ally and have peace, trade, and protection pacts with them!
Bev, The four states have already joined together to share research for public health and the state’s recommendations for vaccines. They probably are also tracking illnesses between them, too. I think they’re ahead of us in what they’re doing. I’m in Washington, so I try to find what I can about what they’re doing.
figure out a way to do Epi Pens and you’re all set!
I always associated him with Kimberly Guilfoyal, a person I find intolerable. She converted at some point from Dem. to rabid MAGA.
I’ve always loved California. They do the good stuff first, and then it travels eastward to get to all of us. As a New Yorker (no shlump of a state), I tip my hat to California.