California eyes selling its own brand of generic prescription drugs to battle high costs

Gov. Gavin Newsom of California is expected to unveil a plan for the state to sell its own brand of generic prescription drugs in his new state budget Friday. The measure, which would be the first of its kind in the nation, is part of an effort to drive down rising health care costs.

Gov. Gavin Newsom of California is expected to unveil a plan for the state to sell its own brand of generic prescription drugs in his new state budget Friday. The measure, which would be the first of its kind in the nation, is part of an effort to drive down rising health care costs. Under the plan, the state could contract with one or more generic drugmakers to manufacture certain prescriptions under the state’s own label. Those drugs would be available to all state residents for purchase, presumably at a lower cost. The governor’s office said the proposal would increase competition in the generic drug market, which in turn would lower prices for everyone. Analysts say it is uncertain if drugmakers would follow California’s lead as Newsom’s administration has suggested. Other key details, including what prescriptions would be manufactured and the timeline for the venture, have not yet been provided. "A trip to the doctor's office, pharmacy, or hospital shouldn't cost a month's pay," Newsom said in a statement. "The cost of health care is just too damn high, and California is fighting back."