California Governor Gavin Newsom is looking to revamp Medi-Cal, including expanding coverage for those over 65 who are in the state illegally and a new prescription drug program aimed at lowering drug costs.

Newsom revealed these plans in his 2020-21 State Budget proposal in January. Jim Mangia, President and CEO of St. John's Well Child and Family Center, said the “significant investment the Governor has made in healthcare for all Californians particularly low-income Californians” makes him jump for joy.

“The fact that he’s putting hundreds of millions of dollars into care coordination and case management, homeless healthcare, and he’s also put $105 million dollars into on-site, non-profit pharmacies at clinics like St. John’s and that’s very significant for our patients,” he said.

The revenue St. John’s receives currently comes from Medi-Cal reimbursement and some funding from the federal government, but the state is most responsible for the funding.

“So, the fact that there’s this $105 million in there to support on-site pharmacies is just incredible and it allows us to keep our three pharmacies open which fill about 120,000 prescriptions a year in South Los Angeles,” Mangia said.

Newsom is proposing a partnership between the state and drug companies to produce its own generic drug label. Mangia said the program, called Medi-Cal RX, is “brilliant” and will lower drug costs for everyone in the state of California.

“It will force the pharmaceutical corporations to finally be accountable for their pricing. Everywhere in the world, drugs are significantly less expensive than they are in the United States of America. So why do we pay more for the same drugs?" he asked. "I  think this move by the Governor is an incredible attempt to bring down drug prices down,” he said.

When it comes to the government getting involved in health care, many people are opposed, but Mangia said in this particular area, he welcomes the project.

I think what the Governor’s proposing is kind of a public-private partnership, where the government would buy the cheapest drugs from the drug makers based on worldwide prices,” he said. “It’s not that California is going to actually produce the medicine, but they’re going to negotiate and use the millions of Medical lives in the state to leverage and bring down drug prices.”

Mangia said St. John’s is the largest provider of health care services to the undocumented in the United States and providing care isn’t about legal status.

“You’re talking about a 67-year-old grandmother with diabetes and hypertension who has been unable to get her medicine or has been unable to see a doctor and is going to lose a limb as a result of not being able to see a podiatrist,” he said. “So, the fact that now that seniors who are undocumented will have coverage, not only does it save the health care system a huge amount of money, but it’s a health and human rights issue.”

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