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Public Policy Newsletter Article

Governor Newsom Unveils 2020-21 Budget Proposal

  • 2020-01-23T16:00:00.000+0000
  • California
  • Author: Emily Cassel

On Friday, January 10, Governor Gavin Newsom released his proposed 2020-21 California budget, including several provisions that could directly affect Biocom members. These talking points are as follows:

  • Medi-Cal best price: the Administration proposes to consider pricing agreements made with foreign governments when negotiating California rebates from manufacturers;
  • Securing additional supplemental state rebates by leveraging Medi-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 state-branded generic drug label (this will likely be executed via SB 852)
  • 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 preview (which can be found here). It is significant to note that some experts have questioned whether some aspects of these proposals can be carried forward due to potential conflict with federal law.

Biocom is monitoring this situation very closely and will keep you informed as more of the substance of the proposals are released.