LOS ANGELES (CBSLA/AP) — California could skirt high prescription prices by becoming the first state in the nation to have its own generic drug label.
Details of the ambitious drug proposal were released Thursday as part of the state’s new budget plan.
California is the most populous state in the nation, so Newsom is aiming at lowering drug prices by creating a single market, forcing companies to bid to sell their medicine at a uniform price.
“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.”
The full proposal is expected to be unveiled later Friday.
(© Copyright 2019 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)