Governor, Democrats reach drug deal

August 23, 2006

California Gov. Arnold Schwarzenegger and Democrats have agreed on a plan to reduce costs of prescription drugs to help lower-income residents.

The plan, which must be approved by the state legislature, will force drug makers to cut prices, and is expected to benefit more than 5 million residents, who will get big discounts on their prescription drugs, reports The Los Angeles Times.

The plan is one of the governor's main re-election campaign efforts, says the report.

Under the plan, the drug industry will have three years to voluntarily negotiate discounts with the state for those who earn up to triple the federal poverty level, or about $60,000 a year for a family of four. The discounts would be up to 40 percent on brand-name drugs and up to 60 percent on generics, the report said.

In the plan, Schwarzenegger accepted Democrats' demand that companies that do not offer sufficient discounts would be impeded from selling drugs through the state's Medi-Cal plan. In return, Democrats agreed to give the industry time to comply and the income limit.

The drug industry could fight the plan in court, the report said.

Copyright 2006 by United Press International

Explore further: The pluses and minuses of drugmakers' discount cards

Related Stories

EpiPen's pricing debacle and its impact on patients, insurers

August 29, 2016

A firestorm erupted this week in response to the pharmaceutical company Mylan's steep increase in the price of its EpiPen, a life-saving treatment for severe allergic reactions, with consumers and politicians expressing outrage ...

Mylan launching cheaper, generic version of EpiPen

August 29, 2016

The maker of EpiPens will start selling a cheaper, generic version of the emergency allergy shots as the furor over repeated U.S. price hikes continues—and looming competition threatens its near-monopoly.

Global spending on drugs to slow through 2016

July 12, 2012

(AP) — Growth in global spending on medications will slow markedly over the next four years due to a large number of new low-cost generic drugs coming to pharmacies in the U.S. and other developed countries, along with ...

No clear path to government-lowered drug prices

March 18, 2016

Most Americans support it. Virtually all other developed countries already do it. And the two leading presidential candidates on both sides of the aisle agree: the federal government should lower drug prices.

Recommended for you

New trials offer hope for TB treatment

October 28, 2016

Researchers at the University of St Andrews are one step closer to finding a shorter, more effective treatment for TB, according to a new paper published by The Lancet Infectious Diseases.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.