PCMA Statement on California Budget Proposal to Lower Prescription Drug Costs

(Sacramento, CA) — The Pharmaceutical Care Management Association (PCMA) released the following statement on Governor Gavin Newsom’s (D) budget proposal to lower prescription drug costs.

“We applaud Gov. Newsom’s goal to lower prescription drug prices for California patients. Lowering prescription drug costs is an important step to improving California’s overall fiscal setting.

“Specifically, we support the Administration’s approach to give the Department of Managed Healthcare oversight to license pharmacy benefit managers (PBMs).

“To further reduce prescription drug costs, we strongly encourage the governor and California policymakers to examine the entire prescription drug supply, specifically drug companies. Drug companies alone set and raise drug prices, and the original list price is a primary factor driving up healthcare costs for patients.

“The legislature’s action today shows that further measures, like SB 41, are unnecessary. SB 41 would only benefit Big Pharma and drive-up healthcare costs for California patients. The bill also does not address the root cause: high drug prices set solely by drug companies.

“To be clear, PBMs support lower prescription drug prices and are calling on drug companies to cut prices. In fact, PBMs are projected to save Californians more than $108 billion over the next ten years, including more than $11 billion in Medi-Cal alone.

“We look forward to working with the Administration to ensure transparency across the drug supply chain and to ensure that consumers benefit.”

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PCMA is the national association representing America’s pharmacy benefit companies. Pharmacy benefit companies are working every day to secure savings, enable better health outcomes, and support access to quality prescription drug coverage for more than 289 million patients.