OAN’s Stephanie Stahl
2:37 PM – Monday, October 9, 2023
Democrat Governor Gavin Newsom has opted to veto a bill aimed at preventing insurance companies from charging more than $35 for insulin.
Advertisement
The proposed legislation sought to prohibit health plans and disability insurance policies from imposing any additional costs, including deductibles and co-pays, for a 30-day supply of insulin beyond the $35 mark.
Newsom (D-Calif.) announced earlier this year that California will produce its own insulin brand. The state entered into a $50 million contract with the nonprofit pharmaceutical company Civica Rx to manufacture insulin under the CalRx brand.
The state would sell a 10 milliliter vial of insulin for $30.
In explaining his decision to veto the bill, Newsom stated, “With CalRx, we are getting at the underlying cost, which is the true sustainable solution to high-cost pharmaceuticals. With copay caps however, the long-term costs are still passed down to consumers through higher premiums from health plans.”
State Senator Scott Wiener (D-Calif.), the bill’s architect, criticized Newsom’s veto as “a major setback” that will keep diabetic Californians trapped in the terrible choice between buying insulin and buying food.
Wiener lamented this missed opportunity, suggesting that it would force individuals to wait for months or even years to alleviate the soaring expenses of medical care, which could have been resolved with this bill.
Insulin is a vital hormone produced by the pancreas that converts sugar into energy. Those who suffer from diabetes often do not generate sufficient insulin, and individuals with Type 1 diabetes need to administer insulin daily for their survival.
In January, California Attorney General Rob Bonta (D-Calif.) filed a lawsuit against the companies responsible for producing and promoting most of the nation’s insulin, alleging illegal collusion to inflate prices.
In March, the major insulin manufacturers announced voluntary price reductions for their products.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
Advertisement