Contracting for pharmaceutical prices
The only good provision of SB 840(Kuehl) is having the State of California contract for better prices for pharmaceuticals.
Pharmaceutical manufacturers routinely bid for preferred "formulary status" on various insurance plans, giving a better price for promise of more sales.
Unfortunately, only patients with insurance benefit from insurance formularies, and cash paying patients frequently have to pay much higher list prices.
The State of California can contract with manufacturers and obtain big discounts for preferred pharmaceuticals, and make the discounts available for all people purchasing pharmaceuticals in the state.
Estimated savings for the people of California are about $4 billion.
This is the only real savings in overall cost of health delivery offered by any of the legislative plans.
... and who knows, manufacturers of drugs that do not get the preferred contract might be motivated to lower their prices to be competitive so they get part of the business...
The legislature should immediately pass a pharmaceutical contracting bill, and the governor should sign it so Californians can get some immediate relief on health care costs.
Then they can put some effort into finding other measures to increase accessability and affordability of healthcare.