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California Enacts Drug Pricing Reform, Launches $11 Insulin

10/18/2025

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Summary

Story summary

California Governor Gavin Newsom (D-CA) signed SB 41, effective January 1, 2026, prohibiting spread pricing by pharmacy benefit managers and mandating pass-through rebates.
The law aims to lower patient costs by aligning copays with negotiated prices.
California will sell its own $11 insulin on January 1, 2026.
The reforms are part of a broader effort to enhance drug affordability.

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Story summary

California Governor Gavin Newsom (D-CA) signed SB 41, effective January 1, 2026, prohibiting spread pricing by pharmacy benefit managers and mandating pass-through rebates.
The law aims to lower patient costs by aligning copays with negotiated prices.
California will sell its own $11 insulin on January 1, 2026.
The reforms are part of a broader effort to enhance drug affordability.