(Sacramento, CA) – In an informational hearing today of the California Senate Budget and Fiscal Review Committee, Senator Jeff Stone (R-Riverside County) proposed the creation of the California Department of Prescription Purchasing and Adjudication to bring savings achieved as a result of bulk purchasing of pharmaceutical drugs back to California consumers.
In his proposal, Senator Stone pointed out that increased drug prices are not due solely to ingredient cost increases. Rather, Senator Stone suggested that higher prices are the result of pricing strategies utilized by both pharmaceutical companies and PBMs designed to capture the savings of bulk purchasing for private benefit instead of the public good.
“Why should we allow PBMs to siphon off billions of dollars from California consumers when the State could use the savings to help pay for better healthcare for more people in California? If California gets into the PBM business, the savings realized through volume purchasing of prescription drugs could easily be passed onto California consumers instead of going to the corporate profits of a few multi-billion dollar companies,” said Senator Stone.
To view a full copy of Senator Stone’s proposal, click on the following link: https://www.youtube.com/watch?v=M6LsM6UJM1o
Specific language of Senator Stone’s PBM proposal will be introduced into legislation in the coming weeks.