9, 2020, he wants California to contract with generic drug companies to make prescription medications on behalf of the state so it can sell them to the public. Prior to that, the state only represented 2 million Medi-Cal recipients, while the rest were placed in managed care health plans that negotiate their own drug rates.
The private market has also created a similar arrangement through Civica Rx, a nonprofit funded by hundreds of hospitals that contracts with private manufacturers to produce generic drugs.
In an executive order, Newsom also directed the state's Department of General Services to supply 100 camp trailers, along with an unspecified number of "modular tent structures" as temporary housing.More news: Brisbane International: Barty not concerned despite early Brisbane exit
"Last year, with the help of strategically pre-positioning firefighting strike teams, California firefighters responded to more than 7,800 wildfire incidents across the state, with far fewer fatalities and destroyed structures when compared to the devastating toll of 2018", Newsom said in a statement.
The governor's office did not say how much the proposal would cost. In May, Newsom will revise his plan once state officials have a better estimate of how much money the state will collect in taxes this year. And in 2017, state attorneys general in New Mexico and Washington opened investigations into whether Eli Lilly conspired with other companies to drive up the price of insulin, a drug that is almost a century old. The idea is part of Newsom's forthcoming budget proposal, which he must present to the state Legislature by Friday. On Wednesday, he announced another $1 billion in spending to combat the state's growing homelessness problem. According to the Office of Statewide Health Planning and Development, from January 2017 to June 2019, generic drug prices increased 37.6%, while brand name drugs rose by 25.8%.
California has seen steep drug price hikes than any other U.S. state in recent years and hopes that by competing with established generic makers it can create more competition and thereby drive down prices.More news: BBL: Stoinis fined for making personal abuse at Richardson
California law requires drug companies to report any price increases to the state.
In the US, less expensive generic drugs comprise the majority of prescriptions filled, but spending on costly brand-name drugs with no alternatives has continued to drive prices higher.
"Californians are demanding that all levels of government - federal, state and local - do more to get people off the streets and into services", wrote Newsom, who also announced a new $750 million fund to help pay for access to housing and homeless services.More news: Rashid Khan Registers Third T20 Hat-Trick of Career for Adelaide Strikers
It's another step in Newsom's effort to overhaul California's prescription drug market.