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California considers selling its own generic prescription drugs:
California could become the first state to introduce its own brand of generic prescription drugs in an effort to drag down stratospheric healthcare costs. The plan for state-branded drugs is part of California Gov. Gavin Newsom's budget proposal, which he is expected to unveil Friday, January 10.
"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." A plan for California to sell its own drugs would "take the power out of the hands of greedy pharmaceutical companies," Newsom said, according to the Associated Press.
Under the plan, the state would contract with one or more generic drug companies, which would manufacture select prescription drugs under a state-owned label, according to an overview of the plan reported by the Los Angeles Times. Those state generics would presumably be offered to Californians at a lower price than current generics, which could spark more competitive pricing in the market overall.
So far, much of the plan's details are unclear, though, including which drugs might be sold and how much money they could save residents and the state.
The conceptual plan so far has garnered both praise and skepticism from health industry experts.
Anthony Wright, executive director of the advocacy group Health Access California, told the Associated Press that "Consumers would directly benefit if California contracted on its own to manufacture much-needed generic medications like insulin—a drug that has been around for a century yet the price has gone up over tenfold in the last few decades."
(Score: 3, Insightful) by deimtee on Tuesday January 14 2020, @10:21AM (6 children)
Some BOTECs.
California has near enough to 40 million people. USA average yearly health cost near enough $9000.
Total $360 billion.
17% of that = $60 billion for pills.
If they can cut that in half, $30 billion is still a fair bit of money.
But the real benefit is that this could be just the first step. It establishes an infrastructure that can then be used to reduce costs in other aspects of healthcare. Or they could start selling the generics to other states or countries.
If you cough while drinking cheap red wine it really cleans out your sinuses.
(Score: 0) by Anonymous Coward on Tuesday January 14 2020, @12:07PM (1 child)
What the hell are people getting for $10k per year? That's nuts.
(Score: 0) by Anonymous Coward on Tuesday January 14 2020, @05:47PM
Lots of bureaucracy, highly solvent insurance companies, rich old dudes running pharmaceutical companies, and the plebs are turned into wage slaves because they can't afford to quit.
(Score: 2) by Coward, Anonymous on Tuesday January 14 2020, @12:56PM (3 children)
If that were possible, why haven't some enterprising pharma types already done it? They could be pocketing a few Billion per year.
(Score: 0) by Anonymous Coward on Tuesday January 14 2020, @03:13PM (1 child)
Because it is illegal.
(Score: 2) by Coward, Anonymous on Tuesday January 14 2020, @05:46PM
TFA says nothing about changing laws or regulations. Whatever is illegal now will be illegal under the new plan.
(Score: 1, Insightful) by Anonymous Coward on Tuesday January 14 2020, @04:12PM
The "enterprising types" got themselves a nice regulatory capture, raised prices through the roof, where do you think those extra dollars are going now?