Legislation Will Enable Calif. to Produce, Distribute Biosimilars, Generics – Healthcare Economist

That’s the title of an article by Angela Maas in Radar on Specialty pharmacy (reprinted right here). A number of excerpts:

“Though state governments often pay for well being care by means of packages reminiscent of Medicaid, prior to now, state governments haven’t manufactured medication,” says Jason Shafrin, vice chairman of well being economics at PRECISIONheor. “Thus, this can be a vital departure from the established order. The California state authorities, nevertheless, doesn’t have a strong set of government-owned drug manufacturing services to begin making its personal drug both.”

Why would producers contract with California to provide medication?

Shafrin tells AIS Well being that there are two key causes for producers to contract with California. First, the medication will likely be out there with out rebates. For that reason, “producers might decrease their listing value however not lose a lot funds by merely chopping out the intermediary — the pharmacy profit managers — and avoiding having to pay rebates.”
Second, he notes that “California is a big market, and it could possibly be the case that these ‘Made in California’ medication would have most well-liked standing amongst California payers. The invoice notes that the state must seek the advice of with key state purchasers together with Public Staff’ Retirement System, the State Division of Well being Care Companies, the California Well being Profit Alternate (Lined California), the State Division of Public Well being, the Division of Basic Companies, and the Division of Corrections and Rehabilitation. Having access to all these massive California payers could possibly be profitable if the reimbursement value is cheap.”

Do learn the entire article right here.

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