Blue Monkey AKA Insect (1987) A Canadian cult horror. A detective and a small town doctor must quarantine her hospital when she discovers a giant bug eating people, laying eggs, and about to unleash a deadly plague.

Trailer: https://youtu.be/aNb-8UQpgXI?si=OhA_kdXR_28dbj0F

It's on Tubi because of course it is. To answer your first question. No. There is no blue monkey. There are no monkeys at all. Why it has that title I don't know. It does have drunk grandmas and Shooter McGavin's number 1 fan.

The plot concerns a viral insect species of sorts that grows much bigger in size after being exposed to a growth hormone at a hospital where it's first victim is being treated. It proceeds to hunt down victims, and it's viral properties prove so deadly it leads to the hospital being quarantined. Among those is Detective James Bishop who's been at the hospital after bringing his wounded partner in for treatment. Bishop leads the efforts to stop the deadly man-sized insect (which is basically a Praying Mantis/ant hybrid). Together with a doctor and entomologist, they race to destroy the rapid-growing nest before the insect can cause any more harm.

I like all the weird characters in this movie. All small town weirdos.

I hate the 4 kids. They're the ones who fed the bug the growth hormone powder. They're responsible for the deaths of at least 20 people. They're off exploring the hospital. It's a Goonies adventure to them. And yet they're perfectly fine at the end of the movie.

I love how they kill the bug at the end. Because all small town hospitals have abandoned research labs in the basement with still working lasers.