Gov. Newsom wants California to contract with generic drug companies to make prescription medications on its behalf, so it could then sell them to the public at lower prices by increasing competition in the generic market.
“The cost of health care is just too damn high, and California is fighting back,” Newsom, a Democrat, said in a statement.
“Consumers would directly benefit if California contracted on its own to manufacture much-needed generic medications like insulin — a drug that has been around for a century yet the price has gone up over tenfold in the last few decades,” said Anthony Wright, executive director of Health Access California.
Newsom, now in his second year in office, has sought to overhaul the state's prescription drug market. Last year, in one of his first acts in office, Newsom ordered the state to take over the Medicaid program's prescription drug benefits, a program that affects 13 million people.
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