Oct. 8 (UPI) — California Gov. Gavin Newsom has vetoed a bill that would have prohibited insurance providers from charging more than $35 for insulin.
Newsom returned Senate Bill 90 without his signature on Saturday. The bill had passed the state assembly and Senate in September without a vote against it from either body.
The bill would have blocked insurance companies from requiring out-of-pocket payments of more than $35 for a 30-day supply of insulin. The governor cited the state’s plan to manufacture its own brand of insulin at a cheaper cost in a letter explaining why he vetoed the bill.
In March, Newsom announced that the state had signed a contract with Civica, a nonprofit drug company, to manufacture insulin. The insulin, sold under the banner of CalRX, will cost “no more than $30 per 10 mL vial or $55 for five 3 mL cartridges,” according to Newsom.
“Bringing down the costs of prescription drugs, and particularly insulin, has long been a priority of mine. People should not be forced to go into debt to get lifesaving medicines,” Newsom said. “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.”
The veto was one of dozens issued by Newsom as he signed dozens more into law on Saturday.
