To battle high costs-Gov Newsom proposes California sell its own brand of generic prescription drugs

[kpete]

SACRAMENTO — California would become the first state to sell its own brand of generic prescription drugs in an effort to drive down rising healthcare costs under a proposal Gov. Gavin Newsom is expected to unveil in his new state budget Friday.
A broad overview of the ambitious but still conceptual plan provided by Newsom’s office says the state could contract with one or more generic drugmakers to manufacture certain prescriptions under the state’s own label. Those drugs would be available to all Californians for purchase, presumably at a lower cost. The governor’s office said the proposal would increase competition in the generic drug market, which in turn would lower prices for everyone.

Whether drugmakers would follow California’s lead as Newsom’s administration has suggested is far from certain. And other key details, including what prescriptions would be manufactured, were not provided.

“A trip to the doctor’s office, pharmacy or hospital shouldn’t cost a month’s pay,” Newsom said in a statement. “The cost of healthcare is just too damn high, and California is fighting back.”

MORE:
https://www.latimes.com/california/story/2020-01-09/california-generic-prescription-drugs-program-governor-gavin-newsom

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[Sherman A1]

1. May not work, but it is certainly worth a look

Happy to see that some folks are looking around for different ideas on this vital topic.

[mwooldri]

2. It's a good idea.

And one that could make California money. Find a manufacturer who is willing to cooperate, and target those drugs where the generic cost is super high compared to the cost of making it. One that comes to mind is insulin. I'm sure private companies will scream "not fair!" but since big pharma has been price gouging Americans for far too long, time to hit them in the pocket book.

Other way is to write some specific anti price gouging laws targeted at big pharma and enforce them. If drug X costs $1 to make (including R&D costs), the company shouldn't need to sell it at a price north of $500 to make a decent profit. That kind of markup is simply obscene. So either control the prices legislatively or by using the free market by introducing a new competitor to the market.

[Massacure]

6. Insulin may not be the best example

Yeah, diabetics get gouged on it. But being a hormone, it is considered a biological compound rather than a chemical one and so it has a lot of regulatory quirks around it. In March, new FDA regulations take effect that makes it easier to approval to sell bio-similar drugs. In fact, Eli Lily and Novo Nordisk are preparing for this; they both just cut their list prices by about 50%.

[Evolve Dammit]

3. An innovative idea driven from a broken system. Godspeed Governor.

[mike_c]

4. I have always thought that government should produce drugs...

...that were developed at public expense or whose patents have expired. It would force pharma companies to compete with low priced alternatives. As I understand it, drug companies do little real R&D, relying upon universities with NIH and similar grants to do most actual drug research. A low priced alternative manufacturer would drive down big pharma prices faster than just about anything else. Make 'em compete with non-profit manufacturers.

[Control-Z]

5. Creative idea.

I'll be looking forward to see how this goes.