In what is being billed as a first-of-its-kind move, California Gov. Gavin Newsom signed an executive order calling for state officials to negotiate prescription drug prices on behalf of the 13 million people covered by Medi-Cal, the state Medicaid program, and allow private insurers to participate as well.

Currently, prescription drug purchasing for all but 2 million Californians is currently handled by private insurers that run managed care plans for the state program. Negotiations will now be handled by the state Department of Health Care Services and all state agencies are directed to purchase drugs together.

Unlock this article by subscribing to STAT Plus and enjoy your first 30 days free!


What is it?

STAT Plus is a premium subscription that delivers daily market-moving biopharma coverage and in-depth science reporting from a team with decades of industry experience.

What's included?

  • Authoritative biopharma coverage and analysis, interviews with industry pioneers, policy analysis, and first looks at cutting edge laboratories and early stage research
  • Subscriber-only networking events and panel discussions across the country
  • Monthly subscriber-only live chats with our reporters and experts in the field
  • Discounted tickets to industry events and early-bird access to industry reports

Leave a Comment

Please enter your name.
Please enter a comment.

  • Ed, As long as there’s an AWP pricing schedule and no laws governing the PBM’s and no transparency of how the PBM’s are charging their clients then the PBM’s will figure out another way to live up to their title , ” The Maffia of the Pharma industry”

Sign up for our Daily Recap newsletter

A roundup of STAT’s top stories of the day in science and medicine

Privacy Policy