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Governor Makes New Plan To Reduce Prescription Drugs

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Sacramento, CA — Governor Schwarzenegger is set to propose a new plan to reduce the price of prescription drugs for low-income residents.

Administration officials say the plan Schwarzenegger will unveil Sunday is similar to Democratic proposals the governor has rejected in the past. Under the governor´s proposal for state legislators, drug companies would have five years to offer discounts to people earning less than three times the federal poverty level.

Companies that did not comply could jeopardize their participation in the state´s MediCal program. Democrats say they are pleased the governor is proposing a plan that includes possible sanctions for noncompliant drug companies. But they called it an election-year change of heart designed to win votes.

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