The goal, according to the governor's office, is to lower prices by increasing competition in the generic market.
Catch up on the developing stories making headlines.SACRAMENTO, Calif. -- under a proposal announced Thursday by Gov. Gavin Newsom, who says it would “take the power out of the hands of greedy pharmaceutical companies."
“Other countries control or negotiate the price of drugs, and if there is one state that could do it, it's California, which is the size of a country,” said Larry Levitt, executive vice president of health policy for the Kaiser Family Foundation. “A drug company could walk away from Rhode Island. It's much harder to walk away from California."
Priscilla VanderVeer, vice president of the Pharmaceutical Research and Manufacturers of America, which represents brand-name drug companies, said she's waiting for more details from Newsom before commenting. Newsom's office did not say how much the drug proposal would cost, prompting criticism from some Republican lawmakers who said the state should not compete with private companies.
But the report doesn't include generic drugs that decreased in price because companies are not required to report that. Nationally, generic drug prices have been decreasing overall, according to a report that AARP produced with the University of Minnesota. Jon Roth, CEO of the California Pharmacists Association, said the state might be surprised, however, at how much it ends up charging for its own generic drugs because of factors beyond its control, including raw material shortages and disruptions in the supply chain.
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