New drug plan would curb exorbitant pharmaceutical costs

By Drew Armstrong
Published Updated 3 Min Read

California’s governor unveiled plans to establish a state-run generic-drug wholesaler, as part of a series of measures that together would constitute one of the furthest-reaching attempts to curb pharmaceutical costs in the U.S.

Gov. Gavin Newsom on Thursday also proposed creating a single market that would allow drug buyers to pool their bargaining power to drive down costs. And Newsom suggested using low prices obtained by the state’s Medicaid program to aid other buyers, among other steps.

Drew Armstrong
Bloomberg News Bloomberg News

For reprint and licensing requests for this article, click here.


More From Employee Benefit News

Sign Up Form

Login Modal Form