SACRAMENTO, Calif. — California could become the first state to make its own prescription drugs. Gov. Gavin Newsom said Thursday that the goal is to lower prices by increasing competition in the generic drug market.
His proposal also would create a single market for drug pricing in California, with companies having to bid to sell their medicine at a uniform price. Lawmakers must approve the plan for it to become law.
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In a statement, Newsom said the cost of health is "just too damn high and California is fighting back."
The prescription drug prices fight will be a crucial part of his new budget proposal Friday, when he will propose a plan to contract with generic drug companies on the state's behalf - hoping to increase competition and decrease the cost of medicine for Californians.
A survey by the Kaiser Family Foundation found that 6 in 10 Americans take a prescription. Nearly 80% of whom say the cost is unreasonable. Three in 10 reported not taking their prescription as directed because of the prohibitive cost.
"If we are not serious about pharmaceutical drugs, we are not serious about addressing the cost curve as it relates to the issue of health care inflation," said Newsom.
Dr. William Tseng is a trustee of the California Medical Association, and past president of the San Diego County Medical Society. He applauded the governor's new initiative.
"Millions of Californians cannot afford health care, and by reversing this trend or focusing on this trend, we can really start getting to the problem and making sure millions of Californians get the health care they need," said Dr. Tseng.
Further, Dr. Tseng said that in some cases, Patients are afraid to admit their prescription drugs are too costly and are not taking them as prescribed - which can have disastrous consequences down the road.
Newsom's office did not say how much it would cost.
That led to criticism from some Republican lawmakers, who say the state should not compete with private companies.
On Wednesday, Newsom signed an executive order aimed at prioritizing the issue of homelessness and calling for $1.4 billion in funding to address it.
Newsom's order mandates that by the end February, state agencies must develop a strategy to provide resources to help house people. It also calls for a $1.4 billion allocation to help homeless people throughout California.