California Seeks To Create Its Own Rx Line To Cut Prescription Costs

California plans to launch Cal RX, a generic drug program to reduce healthcare costs by contracting with manufacturers to produce certain drugs. Governor Newsom aims to create a single market with uniform drug prices, though pharmaceutical companies' cooperation is uncertain. The proposal requires legislative approval and its cost is yet to be determined, but California expects a $7 billion surplus.

What challenges might the state face in implementing the drug proposal?

What financial situation is California expected to have this year?