California's drug program will offer cheaper insulin

The state will sell pens for $II, far below market price

- BY DAKOTA SMITH AND SANDRA MCDONALD

GOV. Gavin Newsom, in announcing the measure, said he was proud of California's role in disrupting “Big Pharma” and its market hold on medications.

(JONATHAN ALCORN For The Times)

In a challenge to the pharmaceutical industry, Gov. Gavin Newsom on Thursday announced a plan to offer $11 insulin pens through the state's prescription program, far below market cost.

Beginning Jan. 1, consumers can purchase a five-pack of pens for a suggested price of $55, according to the governor's office. The packs will be available to California pharmacies for $45.

California is the first state in the nation to sell its own brand of generic prescription drugs through its label, CalRx, as Newsom and other state leaders seek ways to drive down rising healthcare costs.

Appearing at Cedars Sinai Medical Center in Los Angeles, Newsom said he was proud of the state's role in disrupting "Big Pharma" and its market hold on insulin and other prescription drugs.

Pharmaceutical companies "have been gouging you for years and years and years," he said. "They're also gouging Americans by five to 10 times what our European counterparts are currently paying.”

Insulin users without health insurance can pay as much as $400 for five pens.

While major drug companies have recently cut prices on insulin, critics contend those cost savings are subsidized by other consumers.

Health-related groups, including the American Diabetes Assn., applauded the news.