Calif. governor doubles down on Obamacare, drug price negotiation
New California Gov. Gavin Newsom closed his first day in office last week with action on healthcare. He issued an executive order for the state to negotiate drug prices along with proposals to double down on Obamacare with more funding and a state-level individual mandate. Newsom asked all state agencies to band together as one drug purchasing entity to try to barter down prices, and he also laid out a path for private payers to join the public system.
That proposal has analysts hopeful that leveraging the country’s largest Medicaid program could work to lower costs, and could serve as fodder for congressional Democrats advocating for broad Medicare negotiation with manufacturers at the federal level.
Under the current system, the state’s health department buys drugs for just 2 million out of the 13 million Californians on Medicaid. California is the most populous state, with about onethird of its residents on Medicaid.