Gov. Newsom announces California will make its own insulin

July 11, 2022


Decrying market failures and touting the efficiency of the state of California, Gov. Gavin Newsom announced last week the Golden State will begin manufacturing its own insulin.

In a video announcement, Newsom said the state budget he just signed allocates $100 million toward contracting for and making insulin. The insulin will be sold close to at-cost and at a lower price than what is currently on the market.

Of the $100 million allocated, $50 million will go toward the development of low-cost insulin products. The other $50 million will go toward a California-based insulin manufacturing facility, Newsom said.

Currently, many Americans are paying $300 to $500 a month for insulin. California’s insulin production will cut that cost in half, at a minimum, the governor said.

“Nothing epitomizes market failures more than the cost of insulin,” Newsom said. “In California, we know people should not go into debt to receive life-saving medication.”

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The feds subsidize corn growers who can then sell at below their production cost; thus, corn sugar is sold at artificially low prices making it a very cheap food product. 80% of corn grown in the US is from Monsanto seed. Almost all boxed, bagged, canned and prepared foods contain large amounts of corn sugar, even baby formula. Monsanto makes insulin to treat the people who have been ingesting huge amounts of cheap government subsidized corn sugar and it’s paid for by subsidized health care insurance.

This may be the first good thing Newsom has done. That is if his friends, family or business associates aren’t the contractors selling the insulin to the state.

Yet to be determined.

Real interesting seeing all of these downvotes on comments which are essentially just celebrating the fact that our neighbors and fellow Californians will be paying less for life-saving medication. Total shocker.

Why budget, which creates higher taxes, when we have an alleged 95 billion dollar surplus? This boondoggle can be paid for with unspent tax money (which means we are taxed far more than the state actually needs) with no need to place the project into the budget.

I won’t even mention, that with $94 billion available, why isn’t this state produced insulin provided to those who need it………for free?

Typical bought and paid for Government solution; Too much sugar and processed carbs, Let’s just treat the symptoms, not fix the problem. Why not get rid of the sugar and corn subsidies that keep the junk food so cheap? Let’s tax the crap that is making Californians so fat and sick. As was done with cigarettes. take those tax dollars and subsidize healthy food.

Sugar and corn subsidies are mainly for Midwest states like Iowa. They are not going away. California with 10% of the country’s population only has two Senators to send to fight that battle. Good luck with that.

I’ll take a creative way to bring down insulin costs versus making our government the fat and lifestyle police.

Insulin sales are a $10 Billion dollars industry in the US. Or approximately a $1 Billion cost in Ca annually. This investment is 1/10th that cost. The savings to Medi-Cal patients (and the State) alone will pay this investment back quickly.

We should be doing both.

Making insulin as inexpensive as possible but also improving the food choices and health of our citizens. Starting with the public schools, offering decent lunches and getting rid of the junk food. Better education about food choices and diet and basic physiology in our public schools. Also, using zoning and incentives to help alleviate some of the “food deserts” in the poorer areas of California.

Yes, I know that some of these ideas cost money but we’re paying for it now, the cost to society for obesity, metabolic disease, and other illnesses caused by poor diet is insidious.

I am not a governor Newsome fan but I think he may be on to something here. I’m skeptical about how efficiently the state can do it however. But I don’t think it’s a bad idea in principle.

Excellent post, derasmus. I don’t agree with you often, but you are right on this one. Better school lunches—which will be expensive because eating healthy simply is more expensive—and nutrition education are crucial. The prevalence of diagnosed diabetes increased from 0.93% in 1958 to 7.40% in 2015.

Unfortunately, it is cheaper to eat at McDonald’s than it is to shop at your local Fresh and Easy.

This is a nice contrast to the Republican attitude toward healthcare: “either pay more or die”.

Excellent proposal by the governor. Diabetes has a high prevalence in Native American and Hispanic populations who tend to trend lower on the economic scale. If this idea can reduce insulin costs by one-half, it would save afflicted individuals thousands of dollars a year which they would readily spend in other areas of the economy. Europeans spend pennies on the dollar for insulin compared to US diabetics.

Can you say President Newsom?


Once again governor Newsom is showing bold, aggressive leadership aimed at bettering the lives of people in our state. Once again California shows the way for other states to progress.

Definitely complicated as it is technically a disease. But one must make relatively poor lifestyle choices to trigger it so….IDK about using tax money for type 2 diabetics insulin requirements. Personal responsibility has to remain a thing.