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.

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  • 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”

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