Calif. gov­er­nor dou­bles down on Oba­macare, drug price ne­go­ti­a­tion

Modern Healthcare - - Regional News -

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.

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