Prescription drug prices for the chronically ill are nothing nice. In California, two bills to change that equation for drug prescriptions landed on the desk of Democratic Gov. Gavin Newsom. He signed one and vetoed the other.
Assembly Bill 948 that Assemblymember Marc Berman (D-San Mateo) introduced became a state law after the governor’s signature. The law makes permanent an existing consumer co-pay of $250 per month for prescription medication.
Anthony Wright is executive director of Health Access California, a statewide health care consumer advocacy coalition that co-sponsored AB 948. “With the cost of health care ever-increasing,” he said in a statement, “this simple measure will provide huge relief to Californians relying on prescription drugs to manage their health. Gov. Newsom’s signing of AB 948 means Californians will be able to budget accordingly, and not be financially destabilized by huge out-of-pocket costs all in one month or prescription drug price spikes.”
First signed into law with AB 339 in 2015, the cap of $250 out-of-pocket costs monthly for prescription drugs became state law with AB 339, renewed subsequently, and was on tap to expire. Prior to this cap, Californians with medical conditions such as cancer, HIV/AIDS, multiple sclerosis and lupus faced excess out-of-pocket costs, as specialty drug costs reached into thousands of dollars. MS medications are up close to 400%, according to Health Access California.
“Prescription drug costs have continued to climb since 2015,” said Assemblymember Berman in a statement. Against this backdrop, inability to pay medical bills is a leading cause of personal bankruptcy.
Before signing AB 948 into law, Gov. Newsom vetoed a related legislative bill, SB 90, to cap the price of insulin, a prescription medication that fights diabetes, a chronic condition.
Why did the governor veto a cap on prescription drug prices? Is it his seeking of pharmaceutical companies’ donations for a future presidential campaign? Nobody with any sense disputes that running for president under the current political system requires big money donors, also known as corporate America and the wealthy.
We return to Wright of Health Access California.
“Patients continue to struggle with ever-increasing drug costs, and policymakers should take action on this key pocketbook issue by addressing the base costs while protecting consumers. We need to confront the drug companies regarding the inflated prices of prescriptions, and at the same time, ensure than consumers can afford their co-pays and cost sharing.
“Co-pay caps can provide peace of mind to Californians, to know what their costs will be, and plan their budgets accordingly over the year. We are pleased the governor signed AB 948 to make some of the most expensive prescription drugs more affordable to those who rely on them, and so those with MS, HIV, or other chronic conditions do not face pharmacy bills of thousands of dollars in a single month. But we were disappointed SB 90 was vetoed. That would have capped insulin co-pays at $30/month, providing more direct relief to the 4 million Californians living with diabetes.
“We support California’s many steps to rein in the cost of insulin, such as the CalRx Biosimilar Insulin Initiative and active lawsuits by California Attorney General Bonta against insulin manufacturers that use deceptive practices to inflate the price of insulin. But we can do both—rein in the underlying costs and provide direct cost-sharing help to consumers.”
The CalRx Biosimilar Insulin Initiative California is a bid to ensure affordable insulin for diabetes sufferers via contracting with a manufacturing partner. To this end, there is a proposal to invest $50 million to develop the most popular short- and long-acting types of insulin, and $50 million to build an insulin manufacturing facility in the Golden State.
Meanwhile, Wright and Health Access California will continue to work with Gov. Newsom and state legislators to bring down the cost of insulin and other prescription medications stay affordable and accessible to Californians, according to him.
Seth Sandronsky lives and works in Sacramento. He is a journalist and member of the Pacific Media Workers Guild. Email sethsandronsky@gmail.com.
From The Progressive Populist, November 15, 2023
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