California governor Gavin Newsom vetoes law that would have capped price of insulin

Insulin, required by diabetics to control their blood sugar levels, is astronomically expensive in the U.S.—far moreso than other countries. California governor Gavin Newsom, who recently announced a state-supported non-profit supplier of insulin, has vetoed a law that would have capped the price of the drug there at $35 a month.

The bill would have banned health plans and disability insurance policies from imposing any out-of-pocket expenses on insulin prescription drugs above $35 for a 30-day supply. That would have included deductibles and co-pays. … State senator Scott Wiener, a Democrat from San Francisco who crafted the bill, called Newsom's veto "a major setback that will keep tens of thousands of diabetic Californians trapped in the terrible choice between buying insulin and buying food".

The law is unnecessary, Newsom says, because the government insulin is going to be cheap and a price cap would encourage insurers to cheat by moving the cost to premiums.

"With CalRx, we are getting at the underlying cost, which is the true sustainable solution to high-cost pharmaceuticals," Newsom wrote in a message explaining why he vetoed the bill on Saturday. "With co-pay caps however, the long-term costs are still passed down to consumers through higher premiums from health plans."

Who needs policy when you can solve all the problems with public-private partnerships?