Prescription drugs are a crucial part of California's healthcare system, costing commercial health plans and Medi-Cal billions of dollars each year. As that spending continues to rise, patients need greater clarity about how medicines are promoted and priced, and about the commercial relationships that support the information they receive.
California has taken steps to improve transparency, but patients still struggle to see the full picture. In 2024, California's commercial health plans spent $14.9 billion on prescription drugs, while Medi-Cal spent $19.4 billion in the 2024-25 fiscal year. Californians should, therefore, be able to understand how medicines are promoted, how their prices are determined and what financial relationships may sit behind the information they receive.
