Gov. Gavin Newsom's (D-CA) veto of a statewide cap on insulin prices is the latest in a multitude of vetoes that have thwarted the ambitions of the left wing of the California Democratic Party.
Newsom framed his insulin veto late Saturday night as a conservative economic measure despite the fact that lowering prescription drug costs "has long been a priority of [his]." The long-term fix to high insulin and other pharmaceutical prices, Newsom said, is state-funded generic or biosimilar production under programs such as CalRx.
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"With CalRx, we are getting at the underlying cost, which is the true sustainable solution to high-cost pharmaceuticals," Newsom wrote in his veto message. "With copay caps, however, the long-term costs are still passed down to consumers through higher premiums for health plans."
State Sen. Scott Wiener, a San Francisco Democrat who crafted the insulin bill, called the veto a "missed opportunity" that will force patients to wait for CalRx to begin producing its generic form of insulin. CalRx is anticipated to begin producing generic insulin later this year under a $50 million, 10-year contract with nonprofit drugmaker Civica Rx.
Wiener's bill would have banned health plans and disability insurance from imposing out-of-pocket costs on 30-day supplies of insulin over $35, which is comparable to the federal limitation on insulin prices for Medicare patients under the Inflation Reduction Act.
The insulin veto is one of several healthcare bills vetoed this weekend by the California governor, who calls himself an economic pragmatist despite his left-of-center social ideas.
Newsom also this weekend vetoed a bill that would have required public schools to make condoms freely available to high school students, saying that the legislation "would create an unfunded mandate for public schools that should be considered in the annual budget process."
"With our state facing continuing economic risk and revenue uncertainty, it is important to remain disciplined when considering bills with significant fiscal implications," the governor wrote.
Newsom also vetoed a bill that would have allowed cannabis retailers to have food and alcoholic beverage licenses, as well as legislation that would have loosened restrictions on Naloxone.
Late last month, Newsom also vetoed a bill that would have required judges in child custody cases to weigh whether or not parents affirm their child's gender identity, saying that the same judicial principle might be used against liberals if a similar case gets taken up by conservatives in the future. The decision drew significant criticism from LGBT groups and the left wing of the California legislature.
Newsom and progressive Democrats have been at odds regarding healthcare issues, especially on state funding of the long-proposed state universal health insurance system. The governor came under fire this spring for reneging on his promise to utilize the individual mandate tax on those without health insurance to supplement the state exchange program.
Newsom also signed a bill this weekend requiring the California Health and Human Services Department to coordinate with the Centers for Medicare and Medicaid Services for a waiver to use federal funds to further plans for a statewide universal health insurance program. Many on the Left, however, argue that this is not a step close enough to a full single-payer system.
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Although Newsom appears to be making healthcare decisions from a centrist fiscal approach that would attract national-level attention, he has already denied any plans to challenge President Joe Biden for the 2024 election cycle.
"Joe Biden's our president," Newsom told Sean Hannity last month. "He's going to win reelection."