Colorado has just become the first US state to pass legislation that puts a cap on the price of insulin.

Colorado Gov. Jared Polis signed a bill this week that will prevent pharmaceutical companies from charging massive sums of money for the life-saving medication.

Depending on their insurance coverage, diabetic Americans can be charged as much as $1,000 out-of-pocket for a month's supply of insulin.

Now that the HB19-1216 bill has been approved, however, state residents will no longer be forced to pay more than $100 per month for the medication.

With insulin prices increasing by more than 1,000% over the course of the last two decades, the bill also demands the department of law "to investigate the pricing of prescription insulin drugs and submit a report of its findings to the governor" by November 2020.

The price-cap law is set to go into full effect on January 1st, 2020 – but with more than 400,000 Colorado residents living with type 1 and 2 diabetes, the legislation is being hailed as a trailblazing new stance against price-gouging.

(WATCH the news coverage below or our international viewers can check out the footage on the CBS News website)

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