Devil’s advocate: Medi-CAL (California’s Medicaid program, already known for being very permissive) will likely already cover it for the eligible, and should the $11 be used in aggregate to cover distribution and manufacturing for all of California’s citizens, it would be a reasonable rate to keep the program self-sustaining.
Allotting an exception for the payment for those who may have difficulty seems like a reasonable way to cover any gaps while making sure it never runs into the red.
The funny thing is if memory serves right insulin once you get it going is exceptionally cheap to produce. Unironically the 11 bucks may very well be the gross cost of production and transport per batch, probably not wages though.
originally elly lily, novo nordis, and sanofi had a stranglehold on the different types of “extended release insulin” they were behind the lack of generics for a while. until they were able to come up with alternatives insulin not based on the formulaitons of the 3 companies.
Realistically the transportation and labor side is the most expensive, yeah. If the economy of scale gets solid enough in like year 2 of the program it probably could be cut down in price further, but California’s a huge state that may have trouble lowering distribution costs.
Would really depend on how and where production takes place at that point. I’m well aware of the states size, also I’m well aware that I’d rather drive through Nevada and Idaho to get to Washington over going through the central valley and Shasta.
Agreed. I love that this is rolling out in the first place though - I remember patients that had to leave the pharmacy because of their insulin being over $50 when I worked there. Hope that never happens again in this state.
Honestly I hope this is a first step to state run hospitals and eventually universal healthcare. While it’s not an ideal way to go about it it’s probably easier overall long term than dealing with the preexisting mess that is the modern hospital system.
Devil’s advocate: Medi-CAL (California’s Medicaid program, already known for being very permissive) will likely already cover it for the eligible, and should the $11 be used in aggregate to cover distribution and manufacturing for all of California’s citizens, it would be a reasonable rate to keep the program self-sustaining.
Allotting an exception for the payment for those who may have difficulty seems like a reasonable way to cover any gaps while making sure it never runs into the red.
The funny thing is if memory serves right insulin once you get it going is exceptionally cheap to produce. Unironically the 11 bucks may very well be the gross cost of production and transport per batch, probably not wages though.
originally elly lily, novo nordis, and sanofi had a stranglehold on the different types of “extended release insulin” they were behind the lack of generics for a while. until they were able to come up with alternatives insulin not based on the formulaitons of the 3 companies.
In most likely scenarios the social amortization should cover everyone including production/transportation labor.
Realistically the transportation and labor side is the most expensive, yeah. If the economy of scale gets solid enough in like year 2 of the program it probably could be cut down in price further, but California’s a huge state that may have trouble lowering distribution costs.
Would really depend on how and where production takes place at that point. I’m well aware of the states size, also I’m well aware that I’d rather drive through Nevada and Idaho to get to Washington over going through the central valley and Shasta.
Agreed. I love that this is rolling out in the first place though - I remember patients that had to leave the pharmacy because of their insulin being over $50 when I worked there. Hope that never happens again in this state.
Honestly I hope this is a first step to state run hospitals and eventually universal healthcare. While it’s not an ideal way to go about it it’s probably easier overall long term than dealing with the preexisting mess that is the modern hospital system.