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BioCommunique Article

Governor’s proposals may directly impact the life sciences, while experts question legality of certain aspects within the proposals.

Governor Unveils 2020-21 Budget Proposal

  • 2020-01-17T03:47:00.000+0000
  • California
  • Author: Jimmy Jackson

On Friday, January 10, Governor Gavin Newsom released his proposed 2020-21 California budget. In the Health section of the document, the Governor announced proposals that may directly impact the life science industry. They are as follows:

Medi-Cal best price: the Administration proposes to consider foreign government pricing when negotiating California rebates from manufacturers; securing additional supplemental state rebates by leveraging Mei-Cal purchasing power for drug purchases made by the state outside of the Medi-Cal system; increasing the number of local government partnerships in the state’s pharmaceutical purchasing program; creation of a Golden State Drug Purchasing Schedule which would allow any entity (government entities, insurers, self-insured employers) to participate.

So far, there is little detail on these proposals outside of the paragraphs in the budget document. Many experts have questioned the legality of some aspects of these proposals as initially presented. As more specifics come out relative to the substance of the proposals, we will keep you informed. We encourage you to subscribe to the Biocom Public Policy Newsletter for the most current developments on these and other issues.