The administration’s plan is to contract with existing generic drug manufacturers to make certain drugs. Then the state will set the prices and sell them, making them available to “all Californians,” the administration said in a statement.
The idea is to increase competition in the generic market that will result in lower drug prices for everyone.
“A trip to the doctor’s office, pharmacy or hospital shouldn’t cost a month’s pay,” Newsom said in the statement. “The cost of health care is just too damn high, and California is fighting back.”
The governor said he will also build on another of his proposals from last year to consolidate the state's purchasing power to buy other drugs, allowing state health agencies like Medi-Cal and Covered California, along with private insurers and employers, to negotiate together and force drug companies to sell at lower prices.