Governor of California Gavin Newsom signed Senate Bill 40, which caps out-of-pocket insulin costs at $35 per month. This means Californians will pay no more than $105 for a three-month supply, even for brands outside their insurance formulary. The goal is to bring stability and fairness to insulin pricing, offering relief to people with all forms of diabetes.

Senate Bill 41 passed alongside the cap, adding oversight of pharmacy benefit managers (PBMs), the intermediaries that negotiate drug prices between insurers, manufacturers, and pharmacies. These companies have often been blamed for inflated costs and a lack of transparency. The new law requires more accountability and aims to make pricing clearer and fairer for patients.

Starting in January 2026, California will also release its own biosimilar insulin under the CalRx label. Made in partnership with Civica Rx and Biocon Biologics, this long-acting insulin glargine will sell for about $11 per pen, or $55 for a five-pack. Pharmacies can purchase it for $45 per pack, with a simple and transparent structure that eliminates hidden fees. It will be interchangeable with Lantus, meaning patients can switch without needing a new prescription.

These efforts are part of California’s broader CalRx initiative, created to cut drug costs by bypassing traditional profit-driven systems. The program has already reduced prices for naloxone, a medication used to reverse opioid overdoses. Early signs show the impact: Our editor, Justin Eastzer, reported his three-month insulin already dropped from $255 to $105 after SB 40 took effect (we are unsure why the 2026 prices are already being reflected, but we’ll take it!).

Together, the price cap, PBM oversight, and CalRx insulin represent the strongest state-level action yet on insulin affordability and could become a model for other states across the country.

Disclaimer: Diabetech content is not medical advice—it’s for educational purposes only. Always consult with a physician before making changes to your healthcare.