Gov. Gavin Newsom to propose that California manufacture its own generic drugs
Source: Cal Matters
In a bold strategy to drive down prescription drug prices, Gov. Gavin Newsom is proposing that California become the first state in the nation to establish its own generic drug label, making those medications available at an affordable price to the states 40 million residents.
The proposal, part of the new state budget Newsom is expected to send to the Legislature on Friday, would authorize the state to negotiate contracts with drugmakers to manufacture selected prescriptions on behalf of California. Such a disruption of the pharmaceutical industry, proponents say, would leverage the states massive market to increase competition and lower generic drug prices nationally.
The strategy is one of several the Democratic governor plans to recommend to lower the cost of health care for Californians. The administration released only a summary of the proposal on Thursday without the projected price tag, but indicated its part of a multi-prong effort that includes strengthening the states public option for health insurance and increasing drug pricing transparency.
Newsom will also continue last years push to establish a single market for drug pricing, direct the state to ask for more rebates from drug manufacturers, and open a new health care affordability office sometime this spring.
Read more: https://calmatters.org/health/2020/01/gavin-newsom-to-propose-california-manufacture-state-generic-drugs/
still_one
(92,382 posts)contracts with drug manufacturers for generics with the state
PBC_Democrat
(401 posts)If they can manufacture the generics at the same quality and at a lower cost, I think it's a fantastic idea. I'd even like to see them export to neighboring states to maximize the economy scale.
As far as getting additional rebates, that sounds like a great idea but I don't see it happening.
A better idea might be to look into bulk discounts, maybe even with other states.
I'm happy to see them implementing some ideas rather than spewing worthless platitudes and bumper sticker slogans.
Bayard
(22,148 posts)Do contract manufacturing. They make the drugs, the other company puts their label on them.
This is an excellent and original idea.
RicROC
(1,204 posts)He can start with Advair for treatment of asthma. In the US there is no generic so cost is about $250 per dispenser. However, in Canada generic Advair is available for $64. (thru PrescriptionPoint.com)
azureblue
(2,150 posts)Retail on this stuff is silly expensive
NewJeffCT
(56,829 posts)the price has dropped from several years ago when I had to get a prescription - I had good insurance and it was still like $400 for me with insurance paying only $100 of the $500 total price tag.
BlueIdaho
(13,582 posts)As a nation we should control pricing on these medicines - first... I hope California once again shows us the way.
Pantagruel
(2,580 posts)Hopefully following a two term Dem.in 2028.
IronLionZion
(45,526 posts)or not
Purchasing power for negotiating contracts is key to controlling the price. This sounds like how Canada Medicare does it but not US Medicare.
SunSeeker
(51,679 posts)azureblue
(2,150 posts)after all, CA has a bigger economy than England. 5th largest in the world, IIRC
PatSeg
(47,586 posts)He has been pushing boundaries ever since he was mayor of San Francisco.
NCProgressive
(1,315 posts)California is expensive to manufacture anything.
bsiebs
(688 posts)California's huge economy (5th in the world) gives them huge leverage to do this.
Source: https://www.businessinsider.com/california-economy-ranks-5th-in-the-world-beating-the-uk-2018-5
dlk
(11,575 posts)The last penicillin plant in the US closed in 2004.
burrowowl
(17,645 posts)bucolic_frolic
(43,280 posts)Newsom is #2 on Trump's shit list - behind Obama.
applegrove
(118,774 posts)and an overseas market too, California can do it aswell. Ours are private but there is obviously a need for some government direction in the US drug market as it has failed in many ways.