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Newsom's plan could make California first state to make its own generic drugs

Posted at 6:56 AM, Jan 10, 2020
and last updated 2020-01-10 10:01:31-05

SAN DIEGO (KGTV) -- In an effort to lower costs in one the country's most expensive states for medications, Gov. Gavin Newsom wants California to manufacture its own generic drugs.

Newsom is expected to send a proposal as part of the new state budget to the legislature Friday that would allow the state to negotiate contracts with drugmakers to manufacture selected prescriptions on behalf of California.

“The cost of health care is just too damn high, and California is fighting back,” Newsom said in a statement. “These nation-leading reforms seek to put consumers back in the driver seat and lower health care costs for every Californian.”

Three of the most expensive U.S. cities for medications are San Francisco, Los Angeles, and San Diego.

According to a survey by Kaiser Family Foundation, six in 10 Americans take prescription drugs, and 79 percent of those surveyed say the costs are unreasonable.

Prescription drug prices have gone up 38 percent since 2017.

Newsom's plan would make those medications available at an affordable price for 40 million people living in California.

Details on what the drug program will look like will be available when Newsom submits his full proposal Friday afternoon.

If approved, California will become the first state in the U.S. to have its own generic drug label.