Governor, Democrats reach drug deal

August 23, 2006

California Gov. Arnold Schwarzenegger and Democrats have agreed on a plan to reduce costs of prescription drugs to help lower-income residents.

The plan, which must be approved by the state legislature, will force drug makers to cut prices, and is expected to benefit more than 5 million residents, who will get big discounts on their prescription drugs, reports The Los Angeles Times.

The plan is one of the governor's main re-election campaign efforts, says the report.

Under the plan, the drug industry will have three years to voluntarily negotiate discounts with the state for those who earn up to triple the federal poverty level, or about $60,000 a year for a family of four. The discounts would be up to 40 percent on brand-name drugs and up to 60 percent on generics, the report said.

In the plan, Schwarzenegger accepted Democrats' demand that companies that do not offer sufficient discounts would be impeded from selling drugs through the state's Medi-Cal plan. In return, Democrats agreed to give the industry time to comply and the income limit.

The drug industry could fight the plan in court, the report said.

Copyright 2006 by United Press International

Explore further: Use of $4 generic drug programs could save society billions of dollars, study shows

Related Stories

Lawsuit accuses CVS of overcharging for generic drugs

July 31, 2015

CVS Health Corp. deliberately overcharged some pharmacy customers for generic drugs by submitting claims to their insurance companies at inflated prices, according to a lawsuit filed Thursday in federal court in San Francisco.

Review: AAA iPhone app offers member discounts

May 26, 2009

(AP) -- An organization rooted in 20th century car culture is joining 21st century smartphone culture. AAA has introduced a free iPhone application called AAA Discounts, which uses GPS technology to instantly identify nearby ...

Recommended for you

Amazon deforestation leaps 16 percent in 2015

November 28, 2015

Illegal logging and clearing of Brazil's Amazon rainforest increased 16 percent in the last year, the government said, in a setback to the aim of stopping destruction of the world's greatest forest by 2030.

CERN collides heavy nuclei at new record high energy

November 25, 2015

The world's most powerful accelerator, the 27 km long Large Hadron Collider (LHC) operating at CERN in Geneva established collisions between lead nuclei, this morning, at the highest energies ever. The LHC has been colliding ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.