California will begin selling long-acting, low-cost insulin in January, becoming the first state to bypass major pharmaceutical companies, Gov. Gavin Newsom (D-CA) announced Thursday. The move marks a key victory in Newsom’s effort to lower healthcare costs through state-branded medications.
Newsom’s announcement comes shortly after President Donald Trump unveiled TrumpRX, a government website that would let people pay cash for certain prescription drugs at prices negotiated by the federal government. It remains unclear how the program would affect Americans covered by private insurance, Medicare, or Medicaid.
In California, long-acting insulin pens will be available at pharmacies for $11 per pen or $55 for a five-pack on Jan. 1, 2026. The pens are interchangeable with glargine, a generic alternative to Lantus, a once-a-day injection that regulates blood sugar for diabetics. The same amount of Lantus is sold to pharmacies for more than $92, according to data from Newsom’s office.
“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. “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.”
According to the American Diabetes Association, there are about 3.5 million Californians who have diabetes. Nationwide, that number jumps to 38.4 million or about 11.6% of the total population.
“Today’s action marks a significant milestone in California’s ongoing efforts to reduce prescription drug costs,” said state Health and Human Services Agency Secretary Kim Johnson. “Lowering the cost of insulin moves us closer to a California where no one is forced to choose between their health and their financial stability.”
Lawmakers at the state and federal levels have long complained about the high cost of prescription drugs, particularly insulin, a life-saving drug for diabetics. Public pressure and prices set by former President Joe Biden in 2023 had driven down the cost nationally of insulin, but not low enough, according to Newsom.
The lower price of insulin is part of California’s CalRx initiative, which aims to lower the prices of several prescription drugs for residents. Newsom announced three years ago that one of the state’s priorities would be lowering the cost of insulin. While he has made good on that promise, the first vials of low-cost insulin will be for sale two years after Newsom’s promised delivery date of 2024.
Earlier this week, Newsom signed a bill that capped insulin copays at $35 for the first time in the state.
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The bill was sponsored by state Sen. Scott Wiener (D-CA), who said the new law “ensures no family will be forced to choose between buying insulin and putting food on the table in California again.”
Newsom pitched himself as the “healthcare governor” during his 2020 campaign. Earlier this year, the state started to sell Naloxone, a drug that blocks the effects of opioids, at below market prices.
