State Prescription Drug Purchases. Pricing Standards.
"California Drug Price Relief Act"
*Failed*
Official Summary
Prohibits state from buying any prescription drug from a drug manufacturer at price over lowest price paid for the drug by United States Department of Veterans Affairs. Exempts managed care programs funded through Medi–Cal (75% of enrollees).
Fiscal Impact: Potential for state savings of an unknown amount depending on (1) how the measure's implementation challenges are addressed and (2) the responses of drug manufacturers regarding the provision and pricing of their drugs.
- Official CA Voter Guide Summary
- Legislative Analyst Office Analysis
- Show Me The Money (as of Oct 22)
- support: $ 14,480,000
- oppose: $109,000,000
- Ballotpedia Summary
Notes
- applies to any program where the state agency is the ultimate payer for a prescription drug, even if the state agency does not itself by the drug
- state pays for prescription drugs through: Medi-Cal, Public Employees Retirement System, University of California, Dept of Corrections, Public Health (underinsured HIV -positive individuals), State Hospitals, Developmental Services (developmental center residents), California State University
- VA maintains a public database that lists prices paid for most drugs, but some are not listed, pursuant to confidentiality agreements with drug manufacturers
- Drug expenditures in state programs for 2014-2015: $3.8 Billion, of which the State pays about half
- Nationally, prescription drug spending increased 800% between 1990 and 2013
- to be implemented by July 1, 2017