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State Controlled Medicine in California (Guest: Wayne Whinegarden)

February 12, 2020

Wayne Whinegarden of the Pacific Research Institute talks about California Governor Gavin Newsom including a plan for the state to create its own generic prescription label in an attempt to lower the cost of drugs.

California's progressive governor Gavin Newsom, taking cues from Speaker of the House Nancy Pelosi who proposed something similar in the House, has included in the state's budget a proposal to allow the state itself to work with generic pharmaceutical manufacturers to negotiate the price of prescription drugs.

In short: Newsom wants to create a California generic prescription drug label that would import price controls and leverage the negotiating power of the state to keep the price of drugs low. With 1 in 3 of the 40 million people that live in California on Medicaid, that could end up being quite the undertaking.

Wayne Winegarden, senior fellow at California's Pacific Research Institute, joins the Health Care News podcast to discuss the idea and recognizes it immediately as a shallow attempt to wrest control of a portion of the health care marketplace without any understanding of the economic drivers that keep costs high. 

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Sarah Lee is a policy advisor for health care and a host of Heartland's Health Care News podcast.
slee@heartland.org