22 Oct Proposition 61: Drug Price Standards Initiatives (NEUTRAL)
Explanation: Proposition 61 supports regulating drug prices by requiring state agencies to pay the same prices that the U.S. Department of Veterans Affairs (USDVA) pays for prescription drugs.
BWW Analysis: Big Pharma has made it quite clear through recent actions that drug companies put profits over people; returns for stockholders over cures for patients. There is undoubtedly a need for the regulation of drug pricing. BWW is just not sure that Proposition 61 is the appropriate action for the state to take. The proposition fails to definitively define the impacts of its passage. In its current form, it is estimated that there are three possible fiscal scenarios that could result from the passing of Prop 61:
- Drug manufacturers offer VA prices to the state.
- Drug manufacturers decline to offer VA prices to the State, which would lead to state programs having to modify, negating prop 61
- Drug Manufacturers raise VA drug prices.
Due to the uncertainties of this proposition BWW is uncomfortable providing a Yes or No guidance regarding this proposition.