In a strategic move to tackle high prescription costs and ensure reproductive rights, California Governor Gavin Newsom announced that, as part of the upcoming 2025-26 May Revision of the state budget, Newsom is proposing a double-header: cut back on prescription drug prices and enhance access to medication abortion through the state's drug purchasing authority, CalRx. This comes at a time when Californians have grown increasingly worried about the soaring costs of medications and the nationwide assault on reproductive rights.
The middlemen in the pharmacy game, known as Pharmacy Benefit Managers (PBMs), might be getting a new sheriff in town. Newsom's budget proposes that they be licensed and regulated by the Department of Managed Health Care (DMHC). They'll have to put all their cards on the table, reporting operational and financial details, including audited statements. "Prescription drug prices are out of control and we’re shining a light on hidden costs — while also giving CalRX more tools to respond to supply chain disruptions, market manipulation, or politically motivated abortion restrictions," Newsom stated.
Besides roping in PBMs, Newsom's plan to expand CalRx's authority is about getting a grip on the availability of name-brand drugs. This move aims to safeguard against market shenanigans, supply chain hiccups, and, more importantly, any politically-charged shenanigans that might threaten essential medications, especially those related to medication abortion like mifepristone. According to the proposed revision, the expansion of CalRx's purchasing power might be just the ticket California needs to maintain an affordable and steady supply of meds that are on the political chopping block elsewhere in the country.
It's a significant bid in the larger tussle to retain reproductive health care options, ensuring that women in California have uninterrupted access to vital medication, even as other states turn the screws on reproductive rights.
