STAT Plus: California plans to sell its own generic drugs in hopes of lowering costs
In an unexpected move, California plans to become the first state in the nation to sell its own generic drugs under a proposal that Gov. Gavin Newsom hopes will lower rising health care costs.
The measure would involve contracting with one or more generic manufacturers and selling the medicines under the state’s own label. The goal is to increase competition that builds on state efforts begun last year to use government purchasing power to make medicines more affordable for state residents.