California Partners with Civica to Make Affordable Insulin Available

One day into his second term, Governor Gavin Newsom of California has announced a partnership between CalRx, a California Department of Healthcare Services program, and Civica, a healthcare nonprofit, to make affordable insulin available state-wide.

On March 18, 2022, Newsom began taking actionable steps toward affordable insulin through CalRx. The program was initially introduced in August 2022, with $100 million allocated to developing low-cost insulin.

Under this new partnership, California can offer insulin vials for $30 for 10 mL. Five packs of 3 mL pre-filled insulin pens should also be offered at roughly $55. These are approximately 10% of the initial prices of vials and pre-filled pens, usually $300 and $500, respectively.

Civica will work on manufacturing three types of insulin, including glargine, lispro, and aspart, which may act as replacements for Lantus, Humalog, and Novolog, respectively.

According to a statement from the governor’s office, this intends to charge patients for manufacturing and delivering the drug without additional fees. Beyond providing an affordable option for diabetic patients without insurance, this initiative also provides an alternative for insured patients whose out-of-pocket costs may be too high.

“Diabetes has become an overwhelmingly expensive chronic condition, and it is heartbreaking that millions of people in California and across the US are faced with the possibility of having to ration their care and put their lives at risk because they can no longer afford insulin,” said Ned McCoy, President and CEO of Civica, in a press release.

An analysis published in Wise Voter estimates that the average cost of insulin in the United States is $98.70. Just next door, in Canada, the average cost of insulin is as low as $12, over 87% lower than domestic prices. The astronomical prices across the US have left diabetic patients struggling to manage care and adhere to medication regimens.

Unlike the Inflation Reduction Act, which only capped out-of-pocket insulin costs for Medicare patients, CalRx will allow all California residents who require insulin to benefit from this partnership. Although other insulin manufacturers such as Novo Nordisk and Eli Lilly have cut insulin costs, reducing out-of-pocket spending, none have eliminated profit margins like this.

As Civica and the California Department of Healthcare Services continue the partnership, the organizations will look for a California facility to manufacture the medications.

“People should not be forced to go into debt to get life-saving prescriptions. Through CalRx, Californians will have access to some of the most inexpensive insulin available, helping them save thousands each year. But we’re not stopping there — California will seek to make our own naloxone as part of our plan to fight the fentanyl crisis,” noted Newsom in the announcement.