“Most Californians probably do not realize that government regulations cause high drug prices for uninsured patients,” said John R. Graham, director of health care studies at PRI and author of the new report. “Although Prop. 78 creates a new state program, it actually reduces government involvement in setting prescription drug prices by approving voluntary discount programs that drug makers are already operating in the U.S.” Over time, Mr. Graham expects that these discounts will be financed largely by pharmaceutical manufacturers and at little cost to California’s taxpayers.

Supporters of newly proposed California bill SB 840, entitled “The  Health Insurance Reliability Act,” believe that government-run health care will solve America’s health care problems. Last July, the California Democratic Committee Executive Board announced, “a universal, single-payer health insurance system… has
been predicted in numerous American studies and demonstrated in  other countries to result in greater efficiency, lower costs to businesses, individuals, and government.”¹

Certainly, uninsured patients, rising costs of medical care, and emergency rooms flooded with patients for non-urgent care are evidence of a broken health care system. But socialized medicine is not the answer. Californians should seriously consider the Constitutional consequences of a completely government-run system.