Governor Newsom: Stand up for Californians. Veto SB966.

By Julian Cañete, President and CEO of the California Hispanic Chambers of Commerce

Right now, a bill sits on Governor Newsom’s desk that would further increase the cost of drugs for working families and employers across California – doing nothing for patients while pulling in big profits for Big Pharma. Senate Bill 966 (SB 966) would impose even loftier prescription drug costs on Californians, hindering Latino businesses’ and community members’ ability to access affordable medications.

Rather than cracking down on the source of out-of-control prices – big drug companies – supporters of SB 966 are instead going after pharmacy benefits, which employers and unions use to provide affordable and safe medications to the individuals they cover. Now, our families and small businesses are counting on Governor Newsom to stand up for all hardworking Californians and stop SB 966.

This misguided bill would undermine certain pharmacy options that employers rely upon to manage the cost of providing health care coverage, leading to increased costs that will hit small business owners and their workers the hardest. Creating barriers to accessing lower-cost prescription drugs is exactly the wrong approach, and an analysis by the California State Assembly Health Committee found that this legislation could potentially cost millions of taxpayer dollars annually for the California Department of Insurance to regulate the new, unnecessary regulatory framework it mandates.

We also understand that changes were made to exempt (Taft-Hartley) unions, which clearly indicates that there are problems with the legislation. This raises concerns for the Hispanic Chamber, as we wonder why the author would exempt Taft-Hartley unions but not all unions – or even all workers – without acknowledging the impact this legislation would have on the thousands of Latino businesses and individuals that rely on pharmacy networks and services.

Moreover, SB 966 would undercut certain more-affordable home delivery options that many employers and unions currently offer to their members. Rural and senior Californians rely on this option to easily obtain the prescription drugs they need, and these programs have been shown to increase medication adherence, leading to better health overall. Curtailing home delivery options would deal a massive health and financial blow to patients while placing an additional burden on small businesses.

SB 966 would increase health care costs for millions of Californians, harm unions and employers, and hand a victory to giant pharmaceutical companies. Californians across the state are counting on Governor Newsom to prioritize patients, businesses, and labor by vetoing this harmful bill.

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