BREAKING NEWS: Gavin Newsom Makes Announcement On Insulin Prices In California

A new initiative aims to significantly lower the cost of insulin for Californians. This effort involves a partnership to launch an affordable long-acting insulin, available with the CalRX label in California and as Civica insulin elsewhere. The goal is to ensure that this life-saving medication is accessible and affordable at the pharmacy counter, with a stated maximum recommended retail price of $55 for a five-pen supply, even for those without insurance.

This collaboration, spearheaded by Civica, a nonprofit generic drug company created by hospitals, seeks to disrupt the market and provide substantial savings to consumers. The initiative is part of a broader vision to create a more equitable and transparent pharmaceutical market, extending beyond insulin to other essential medications and healthcare needs.

The announcement highlights real-life impacts of insulin costs on individuals and families, emphasizing that insulin is a necessity, not a luxury. By removing middlemen and leveraging purchasing power, the program aims to fundamentally reduce healthcare costs and make essential medicines more accessible to all.

• A new long-acting insulin, interchangeable with Lantus, is launching in California under the CalRX label.
• The insulin will be priced at $45 for five pens, with a maximum recommended retail price of $55 for five pens, even for the uninsured.
• This initiative is a partnership aimed at ensuring insulin is accessible and affordable for millions of Californians.
• The program seeks to fundamentally lower healthcare costs by removing middlemen and reducing prices for individuals.
• Future plans include expanding the CalRX brand to other essential drugs and addressing broader healthcare affordability issues.

Introduction of Civica RX and Partnership [00:45]

• The speaker introduces Civica RX as a nonprofit generic drug company created by American hospitals to ensure a reliable, safe, and affordable supply of essential medicines.
• Civica RX has delivered over 200 million vials of medicine to hospitals nationwide.
• The organization has expanded its mission to ensure affordability at the pharmacy counter through partnerships with health plans.

This section sets the stage for the announcement by introducing Civica RX's mission and existing work in providing affordable medications. It highlights their role in addressing the need for accessible and cost-effective essential drugs.

"At Civica, we believe that insulin should never be out of reach for those who need it."

Launch of Affordable Insulin Glargine [01:52]

• A partnership with the state of California is announced for the upcoming launch of insulin glargine, a long-acting insulin interchangeable with Lantus.
• This insulin is the most used in the United States.
• In California, the product will be available under the CalRX label, and as Civica insulin in the rest of the country.
• The goal is to deliver savings to consumers at the pharmacy counter.

This part details the core announcement: the introduction of an affordable, high-usage insulin under a new labeling system designed to benefit consumers directly. The focus is on making a critical medication more accessible and less burdensome financially.

• The product is priced at $45 for five insulin pens, representing the lowest list price for insulin glargine.
• A maximum recommended retail price of $55 for five pens has been established, ensuring no one pays more, even without insurance.
• A QR code is included on the packaging to link to the maximum price for transparency.
• Out-of-pocket costs for insured individuals may be significantly lower.
• CalRX insulin will be available for ordering and dispensing by any pharmacy in the state, with health plans having the option to include it on their formularies.

This section provides specific pricing details and transparency measures, aiming to empower consumers and ensure clarity regarding the cost of this essential medication. It emphasizes the commitment to affordability for all, regardless of insurance status.

"We've priced this product at $45 for five insulin pens. That is the lowest list price available for insulin glargine."

Personal Stories of Insulin Dependency and Cost Burden [03:40]

• The speaker shares personal stories of individuals struggling to afford insulin, including a mother worried about running out and someone feeling "one drop vial away from being out of insulin" despite having good insurance.
• These anecdotes underscore the emotional and financial toll of high insulin costs on individuals and families.

These narratives humanize the issue of insulin affordability, illustrating the real-world consequences of high drug prices and the anxieties faced by those who depend on insulin for survival. They serve as a powerful call to action for the initiative.

"Nobody should feel that way and that's why we're doing this work."

Introduction of Advocates and Their Experiences [04:08]

• Nikita Colum Harris, living with type 1 diabetes, shares her personal journey, including her diagnosis, the significant number of injections and finger pricks she has endured, and a life-threatening experience due to running out of insulin.
• She emphasizes that insulin is a "vial of life" and expresses hope in humanity through scientific advancements and collective efforts for affordability.

Nikita's testimony provides a deeply personal perspective on the critical need for insulin and the severe consequences of its inaccessibility, reinforcing the importance of the affordability initiative. Her story highlights the bravery and resilience of individuals managing chronic conditions.

• Grace Pang, a student, shares how diabetes impacts her family, with both her father and grandmother living with type 2 diabetes and relying on insulin.
• She recounts a near-emergency situation when her father forgot his insulin on a business trip, underscoring its essential nature.
• The family spends over $100 each month per person for insulin, highlighting the significant financial strain.
• She mentions witnessing parents make impossible choices between food and medicine due to costs.

Grace's perspective brings a familial and observational viewpoint to the issue, showcasing the daily routines and financial anxieties associated with managing diabetes within a family. Her observations highlight the broader societal impact of drug pricing.

"No family should ever have to live with that sort of uncertainty."

California's Vision for Healthcare Affordability [09:58]

• The California Health and Human Services Secretary expresses commitment to affordability and thanks Civica for the partnership.
• This product launch embodies California's vision for an equitable, transparently priced pharmaceutical market.
• The CalRX initiative is part of a larger effort to make healthcare more affordable in California, including improving access to albuterol, naloxone, and reproductive health medications.

This section connects the insulin initiative to California's broader healthcare policy goals, emphasizing a commitment to equity, transparency, and accessibility across various essential medical needs. It positions the state as a leader in healthcare reform.

• The state is also addressing medical debt and investing in the healthcare workforce through scholarships and loan repayments.
• Investments are being made in behavioral health and substance use disorder care to improve accessibility and integration.
• The Office of Healthcare Affordability was established in 2022 to slow healthcare spending growth and address high-cost outliers.

This broadens the scope of California's healthcare reform efforts, demonstrating a comprehensive approach that includes not only medication affordability but also debt reduction, workforce development, and mental health services. It paints a picture of a holistic strategy for improving health outcomes and financial well-being.

"This product launch really embodies California's vision of an equitable, transparently priced pharmaceutical market where all Californians can afford access to the medications they need for healthier lives."

California's Leadership in Healthcare Affordability and Disruption [12:07]

• The Governor announces that starting January 1st, California will be the first state to offer lower-cost insulin, not subsidized, available to anyone at pharmacies and via direct mail.
• The price will be $11 per pen, or $55 for a month's supply of long-lasting insulin.
• This is the result of a three-year process and will continue to expand in the coming years, including the development of more insulin options under the CalRX brand.

This is a pivotal announcement, positioning California as a trailblazer in making insulin directly affordable without relying solely on subsidies. The focus is on a systemic change that benefits all residents and sets a new precedent for drug pricing.

• The initiative aims to fundamentally lower healthcare costs, not just spread them.
• It represents a "pattern interrupt" in how the system operates, significantly different from other approaches to cost reduction.
• The strategy involves taking out the middleman to reduce costs for individuals and taxpayers.

This highlights the innovative and disruptive nature of the CalRX program, emphasizing its focus on direct cost reduction rather than indirect cost management or subsidization. The strategy is designed to bypass traditional market inefficiencies.

"fundamentally what we're doing is creating a pattern interrupt."

• The program aims to expand its portfolio of offerings, including looking into the diaper market to lower costs and remove middlemen.
• The CalRX brand is also involved in providing albuterol in public schools and making naloxone more affordable, with 160,000 units of naloxone boxes distributed monthly.
• The cost of naloxone boxes was reduced to $23.24 for two, made available direct to consumer.

This demonstrates the ambitious and wide-ranging scope of the CalRX initiative, extending beyond insulin to address affordability in other essential product categories like diapers and crucial medications like albuterol and naloxone. It shows a commitment to leveraging purchasing power for broad consumer benefit.

• The price for the insulin will be $45 to pharmacies, with a $10 processing fee, resulting in a $55 retail cost, described as the "best in the nation."
• Current lowest pricing for insulin is around $89, with average prices north of $300 and as high as $411.
• The new pricing will reduce the cost from a range of $89-$411 down to $55 in California starting January.
• This is a cost reduction, not a subsidization or cost socialization.
• Anyone can access this insulin without a new prescription by transitioning to this biosimilar.

This section directly contrasts the new affordable pricing with existing market prices, quantifying the significant savings. It emphasizes that this is a genuine cost reduction, making a vital medication accessible to a much wider population.

"Here now in California, starting in January, we'll get that down to $55. Not subsidizing, lowering the cost, not socializing and spreading the cost."

• California is presented as a leader in healthcare reform, providing universal healthcare regardless of pre-existing conditions, ability to pay, or immigration status.
• The state is shifting from an expansion mindset to a wellness and health mindset, focusing on quality and affordability.
• This includes initiatives like addressing ultra-processed foods, providing free school meals, and focusing on healthcare as "health care, not sick care."

This frames California's healthcare initiatives within a larger context of progressive policy, highlighting a comprehensive approach to public health that prioritizes prevention, wellness, and equitable access, moving beyond just insuring people to actively promoting health.

• The existence of the first-in-the-nation Office of Healthcare Affordability signifies a commitment to lowering costs and driving regulatory change.
• The goal is to disrupt big pharma and bypass its multibillion-dollar market, where 90% of insulin in the U.S. is controlled by just three companies that have been "gouging" consumers for years.
• Americans pay five to ten times more for insulin than their European counterparts.

This section directly confronts the power dynamics of the pharmaceutical industry, particularly "big pharma," and positions the CalRX initiative as a direct challenge to their market dominance and pricing practices. It highlights the significant disparity in insulin costs compared to other developed nations.

"and providing access to disrupt and bypass I'll say it big pharma to disrupt this multibillion dollar market 90% of insulins in this country 90% % share in the hands of just three big companies and they have been gouging you for years and years and years."

Potential Cost Savings for Medi-Cal [23:52]

• A question is raised about the specific cost savings for Medi-Cal.
• The response indicates that the Medi-Cal program buys drugs directly, and conversations are ongoing with health plans, CalPERS, and Medi-Cal to determine the exact impact and how much of a help this will be.

This addresses the practical implications of the new pricing for a significant segment of the population covered by public health programs. It acknowledges that final numbers are still being determined through ongoing negotiations.

• The hope and goal is that this disruption will lead to a significant decline in costs across the spectrum, similar to the impact seen with naloxone.
• The expectation is that anchoring prices with this initiative will help move the cost curve in a different direction and collapse overall costs.

This outlines the anticipated ripple effect of the insulin initiative, predicting a broader reduction in healthcare expenses due to market disruption and the establishment of new, lower price benchmarks.

"That's the hope and expectation here as we can anchor then and start to see the cost curve start to move in a different direction and collapse overall."

Discussion on Political Events and Founding Principles [25:02]

• The Governor offers advice for upcoming events, urging peaceful and thoughtful participation.
• He warns against disruption and violence, stating that such actions can be exploited.
• He hopes for unprecedented numbers of participants who act not just for themselves but for each other and the principles the country was founded upon.

This section shifts focus to broader civic participation and the importance of upholding foundational democratic principles in the face of potential unrest. It emphasizes the need for peaceful assembly and a deep understanding of the stakes involved.

• The speaker references the Declaration of Independence, freedom from tyranny, and the rule of law.
• He expresses concern about the rule of law increasingly appearing to be the "rule of dawn" and emphasizes the preciousness of the current moment and what is at stake.
• He urges people to "put a stake in the ground" and participate peacefully, remembering the values of co-equal branches of government, popular sovereignty, and the rule of law.

This part delves into deeply held political and philosophical beliefs, linking current struggles to the core tenets of American democracy and historical struggles against tyranny. It serves as a powerful reminder of the enduring importance of these principles.

"And I hope it's dawning on people how precious this moment is and what's at stake."

Inhaler Initiative and Manufacturer Selection [26:57]

• Funds were shifted from a previous initiative to support the inhaler initiative in public schools through CalRX.
• A determination was made with Biocon that their existing facility in Virginia was adequate for manufacturing, allowing for flexibility in investigating alternative options.
• Legislative redirection of funds has occurred.

This provides an update on specific program implementation, detailing how funding and manufacturing decisions are made to support initiatives like providing inhalers to schools. It shows the practicalities of program execution and resource allocation.

• The existing manufacturer in Florida and Virginia will be used for the inhaler initiative.

This clarifies the manufacturing partner for the inhaler program, indicating a decision to utilize existing facilities.

Development of Fast-Acting Insulin [27:50]

• The launch of long-acting insulin on January 1st is confirmed.
• The development program for fast-acting insulin was initiated in the summer, with insulin aspart being the first targeted.

This updates on the timeline for the next phase of insulin development, moving from long-acting to fast-acting formulations. It signifies a continued commitment to expanding the portfolio of affordable insulin options.

• Testing for fast-acting insulin is underway, with an expected completion of tests by July, followed by the formal FDA approval process.
• Delays have been encountered, but progress is now being made, and the development is taking shape.

This provides a detailed timeline and status update for the fast-acting insulin development, acknowledging challenges but highlighting forward momentum and the path towards regulatory approval.

Legal and Regulatory Commentary [28:57]

• The speaker comments on individuals being subject to state laws, using speed limits as an example, regardless of their employer or federal authority.
• The legal actions against Donald Trump are discussed, referencing a "clear violation of the law" regarding the potential use of the military for domestic policing.
• The legal strategy involves pursuing justice against "illegal acts of the president" and mentions pending Supreme Court decisions.

This section shifts to commentary on legal matters and the rule of law, particularly in the context of political actions. It expresses strong opinions on the legality and morality of certain governmental actions and the pursuit of justice.

• The assertion of a potential visit to San Francisco by Donald Trump is questioned, stating there's no pretext or justification.
• Such actions are described as "grossly illegal," "immoral," and "delusional," with the president appearing "unhinged."

This offers a sharp critique of specific political actions and the perceived state of mind of a political figure, framing it within a legal and ethical context. The language used is strong and conveys a sense of concern and urgency.

"It is grossly illegal. It's immoral. It's rather delusional."

Crime Safety Initiatives and Law Enforcement Support [31:25]

• Laws regarding responsibility and accountability for those found guilty are clear.
• Additional grants totaling $1.1 billion have been provided to District Attorneys, sheriff's departments, and local police departments as part of a crime safety plan.
• This plan focuses on retail theft, petty theft, and car break-ins, with millions distributed for investigations and prosecutions.

This segment details significant financial investments and strategies aimed at combating various forms of crime. It highlights a multi-pronged approach involving grants, prosecution support, and law enforcement partnerships.

• Programs to "saturate" high-crime areas with the California Highway Patrol (CHP) and strike teams are being implemented, building on successful past efforts.
• Enhanced partnerships have been announced in Los Angeles, and similar investments will continue.
• The recruitment of over a thousand new CHP officers, the largest class in decades, provides increased capacity.

This further elaborates on the state's commitment to public safety, emphasizing the expansion of law enforcement presence and collaborative efforts to address crime concerns. The increase in CHP officers signifies a substantial bolstering of state-level law enforcement capabilities.

"We're doing everything we can, uh, to help support local officials financially and support them with partnerships, uh, with state law enforcement."

Inhaler Market and Propellant Considerations [33:31]

• Researchers are concerned about the market and its impact on large companies.
• A question is raised about the propellant being used in inhalers.
• The response indicates that proposals are being taken, and the propellant will be a critical component of the evaluation.

This addresses a technical aspect of the inhaler initiative, highlighting the importance of specific product components and the process for evaluating proposals in the context of market concerns and product development.

• The goal is to have inhalers in every school due to concerns about children experiencing asthma attacks without access to medication.
• The consideration of inhaler components, including propellants, will be taken into account to ensure access and effectiveness.

This reiterates the urgent need for inhalers in schools and emphasizes a thorough evaluation process that includes the technical specifications of the devices to ensure they meet the needs of students.

"So our goal is to get inhalers in every single school."