San Francisco, Santa Clara, Alameda counties join Governor Newsom to lower drug prices

San Francisco Chronicle

16 May 2019 - San Francisco, Santa Clara and Alameda counties joined on Thursday Governor Gavin Newsom’s ambitious plan to lower prescription drug prices in California, adding major support to his plan to make California the biggest single purchaser of prescription drugs in the country.

Newsom signed an executive order on his first day in office in January to create a collective bargaining group for agencies that buy medicine for government employees covered by state health care plans, retirees, hospitals and inmates. It also includes the 13 million recipients of Medi-Cal, the state’s health care program for the poor.

By partnering with the governor, the three Bay Area counties and Los Angeles County — which signed on to the plan last month — agreed to sit at the same table when negotiating prescription drug prices with manufacturers. Newsom said California will have more bargaining power against pharmaceutical companies if public and private agencies work together.

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Michael Wonder

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Michael Wonder

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Medicine , US , Regulation , Pricing , California