California will start making its own affordable insulin, Governor Gavin Newsom says

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$100 million of the state's budget will be put into the effort to make the drug more affordable after years of skyrocketing prices.

The cost of the drug is what epitomizes market failures more than anything else.

The hormones in the body that help regulate blood sugar are produced by the human body. Diabetes is a condition in which people can't process or produce enoughinsulin. They need to give their bodies moreinsulin to help them.

It should be a fairly easy treatment. Since the 1920's, people have been able to makeinsulin. According to one study, an estimated one in four people with diabetes have to ration their injections due to the high prices of the drug.

Plans for CalRx were announced in 2020. CalRx is a program that creates generic drugs and sells them to Californians at a lower cost by partnering with manufacturers or creating their own. Kaiser Health News reported in June that the program may be able to kick start it.

Other groups have tried to bring down the price of the drug. Many states have similar caps on the books or in the works, including Colorado, which has a $100 cap on the price of diabetes drugs. The federal government is trying to cap the price of the drug. In May, the nonprofit Civica Rx announced it was working on a project to manufacture and sellinsulin for no more than $30 a vial. If the FDA approves the drug, it could be available as early as 2024. California is one of the states that Civica has had discussions with.

When and how much it will cost is not known. According to the governor's office, many Americans pay hundreds of dollars a month for the drug and that it would be cheaper with CA'sinsulin.