California's families and small businesses can't afford another drugmaker backroom deal.
By Faith Bautista Tamashiro
Last week, the California legislature passed Senate Bill 41 (SB)—a piece of legislation disguised as a cost-saving measure that would actually hike up healthcare
costs for Californians across our state. Now that the bill has landed on his desk, Governor Gavin Newsom has a choice to make: stand with California's minority communities, too many of whom already struggle to afford prescription drugs, or side with pharmaceutical
companies that profit from higher healthcare costs.
The truth is that SB 41 would weaken one of the few tools that helps keep drug costs in check, lining the pockets of pharmaceutical companies that are already
posting record profits. This bill is not a patient-first reform—rather, it is a payday for drugmakers that will leave patients, families, unions, and small businesses across California to foot the bill.
The National Diversity Coalition represents communities of color and minority-owned businesses that already shoulder the heaviest burdens of rising health
care costs. Families cutting
in half, seniors skipping refills to stretch fixed incomes, and small business owners forced to choose between offering coverage or keeping
their doors open—these stories are all too common. For our most vulnerable neighbors, unaffordable prescriptions aren’t an inconvenience; they are a threat to health, dignity, and economic stability.
The risks of SB 41 are clear. Instead of lowering costs, it strips away protections that allow health plans and employers to negotiate fairer prices. Without
those checks, pharmaceutical manufacturers can raise prices even faster, adding pressure to Medi-Cal, employer health plans, and union coverage. The California Department of Finance has already
that SB 41 will increase costs for patients and the state. And with California facing a $12 billion budget deficit and critical programs already under strain, the state simply cannot afford legislation that drives costs even higher.
Governor Newsom has recognized these dangers before. Just last year, he vetoed a nearly identical bill, citing concerns about higher prescription drug costs
for Medi-Cal beneficiaries and working Californians. That decision reflected his leadership on affordability—and his understanding that California cannot allow corporate interests to dictate the price of essential medicines. SB 41 presents the same challenge
and the same opportunity: to once again protect patients and reject special interests.
Californians agree. A statewide survey
that 72 percent of voters oppose SB 41, and 82 percent believe the Governor should veto any legislation that raises prescription drug costs. That opposition is especially strong in communities of color, where the financial and health impacts of unaffordable
medicine hit hardest.
This frustration cuts across political lines because high prescription drug prices aren’t partisan—they are personal. Californians know exactly who benefits
when costs go up, and it isn’t them. Drugmakers already enjoy profit margins
those of most other industries. They do not need another handout from Sacramento.
The stakes extend beyond individual households. Small businesses—many of them owned by immigrants and people of color—are grappling with higher insurance
premiums driven by rising drug prices. When coverage becomes unaffordable, employees suffer, businesses struggle to compete, and California’s broader economy loses. For entrepreneurs trying to grow and hire in underserved communities, higher drug costs can
mean fewer jobs and fewer opportunities.
Governor Newsom has already shown that he is willing to put patients first by rejecting policies that would raise drug prices. Vetoing SB 41 gives him the
chance to do so again—and to further strengthen his legacy as a champion for underserved communities and a leader committed to lowering health care costs for Californians.
By standing with families, seniors, small business owners, and minority communities, the Governor can demonstrate once more that California will not be
dictated to by pharmaceutical manufacturers. He can affirm that our state’s values are rooted in fairness, affordability, and equity—and that protecting patients will always come before padding corporate profits.
SB 41 is more than just another bill—it is a defining moment. By vetoing it, Governor Newsom can keep California moving toward a fairer health system where
patients come before corporate profits. The health and economic security of millions of Californians depend on it.
Faith Bautista Tamashiro is President and CEO of the National Diversity Coalition, a California based nonprofit promoting opportunity, financial equality, economic and social empowerment for all Americans, including minorities and low-to-moderate-income communities.