California governor proposes more than $1 billion toward homelessness

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Newsom wants the nation's most populous state, home to almost 40 million people, to contract with generic drug companies to make prescription medications on its behalf so it could then sell them to the public. One expert said that piece would have the bigger impact.

They also began taxing people who refused to buy health insurance, using the money to help pay health insurance premiums for middle-income families. "It's much harder to walk away from California".

The plan, details of which were seen by several news outlets, would allow the state to negotiate contracts with drugmakers to manufacture certain prescriptions under its label.

"Californians are demanding that all levels of government - federal, state and local - do more to get people off the streets and into services, whether that's housing, mental health services, substance abuse treatment or all of the above", Newsom said. "I really do think there is quite a bit of merit in having us produce the medications".

"The state of California is treating homelessness as a real emergency - because it is one", Newsom, a Democrat, said in a statement announcing his budget proposals, which he is expected to formally deliver to the state legislature on Friday. The non-partisan Legislative Analyst's Office says the state could have as much as a $7 billion surplus this year. "The money is coming out of families' pockets paying all those insane taxes". The drug has been on the market for decades and has steadily increased in price. The goal, according to the governor's office, is to lower prices by increasing competition in the generic market. That analysis was based on the list prices of the drugs and did not include discounts or rebates. Total drug spending rose 2 percent in 2017, according to a report from Blue Cross Blue Shield, despite the fact that 83 percent of prescriptions filled were generic drugs.

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Newsom will also continue last year's push to establish a single market for drug pricing, direct the state to ask for more rebates from drug manufacturers, and open a new health care affordability office sometime this spring.

Last year, California became the first state to offer full health benefits to low-income adults 25 and younger living in the country illegally.

'There are other factors in the actual manufacturing that the state may not be able to escape, ' he said. Generic drugs make up 90% of all prescriptions but account for a fraction of drug spending because they're so much cheaper than brand-name prescriptions.

Newsom, now in his second year in office, has sought to overhaul the state's prescription drug market.

In addition to the $750 million in the budget, Newsom is seeking $695 million in state, federal and private funds on California's Medicaid program by 2022 to improve its services for homeless people.

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