Campaign Coverage 2020

California to use market power in bid to lower drug costs



SACRAMENTO, Calif. (AP) — California will attempt to use its massive market power to increase the availability and lower the cost of prescription drugs. The new law that Gov. Gavin Newsom approved Monday requires the California Health and Human Services Agency to create partnerships designed to increase competition, lower prices and reduce shortages for generic prescription drugs. Newsom said the measure brings the state “one step closer” to his January budget proposal for California to eventually create its own generic label. He said the most populous state has started to identify certain medications and develop a plan to promote its manufacturing and purchasing.

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