SDCTA opposes the Drug Price Relief Act (2016)
SDCTA opposes the Drug Price Relief Act, as policies aimed at lowering prescription drug prices come with a trade-off. Price fixing prescription drugs to the VA would reduce healthcare costs for the State of California, but shift the burden of drug costs to private buyers or even the VA itself, which has been receiving discounts in recognition of veterans' service and general health care needs. Moreover, pharmaceutical companies may offset profit losses by allocating less investment toward drug research and development, negatively affecting future innovation in medicine as well as San Diego's large biotechnology and pharmaceutical industry and economy. The measure neither promotes efficiency nor equity in the drug market and therefore will not relieve the cost burdens of prescription medicine for patients as intended. The fiscal effects also remain unclear.