California Medicaid moves to direct purchase for drug program

NCPA January 7, 2019

California's new governor, Gavin Newsom, signed an executive order that proposes using the state's buying power to drive down pharmaceutical costs, allowing government programs, health insurers, and private businesses to join forces to negotiate against drug makers. The move is a state-level version of an idea floated by the Trump administration. The executive order does not require legislative approval. There are some 13 million people in California's Medicaid program.