California is broke and making bad decisions

OPINION – As Founder and President of Asian Industry B2B, a non-profit small business organization focused on uplifting Asian and minority communities, I talk to business owners all the time who are dealing with inflated costs. In these challenging times, where budget constraints are real, we Californians need to assess where our taxpayer dollars are being utilized.

The California Assembly is currently contemplating legislation that will increase health care costs for taxpayers, small business owners, and unions, while giving a multi-billion dollar handout to Big Pharma. Meanwhile, the Governor is considering sizable cuts from various areas to cover a $45 billion budget deficit including cutting $2 billion from educational programs – from upgrading preschool and kindergarten facilities to scholarships oriented towards middle class college students seeking a teaching credential.

Here’s what Californians should be asking themselves: Should our money go toward nurturing the next generation’s education or growing Big Pharma’s bottom line?

Let me share more about Senate Bill 966 (SB 966). It’s designed to hinder tools used by Pharmacy Benefit Managers (PBMs) to gain savings on drugs. PBMs are a big help for us and our employees managing our prescription-drug benefits. They negotiate lower drug costs for our employees, provide predictability on pricing, and offer high-quality pharmacy networks and clinical programs that help keep them safe and healthy. By doing all this, they are projected to save Californians $108 billion dollars over the next ten years.

Even more importantly, employees save money. According to one study, every year PBMs save 266 million payers and patients 40-50% on their drug and related medical costs. On average, that’s a savings of $962 per person per year. That’s a substantial savings when everything from gas to groceries is going through the roof.

Proposed legislation, Senate Bill 966, would hurt small businesses, interfere with our ability to enter into private contracts, and limit our options when it comes to the health coverage we buy for our employees. Are we prepared to overlook such savings?

We need to reconsider this legislation and focus more on where our dollars can be used efficiently and productively. This isn’t just about saving money for taxpayers and small businesses but directing it towards sectors currently getting cut such as education, which benefit everyone in our community.

Big Pharma already has enough money; it’s time we use our taxpayer dollars for a broader benefit. To ensure a brighter future for California, let’s find better ways to invest our money rather than boost Big Pharma’s profits.

Marc Ang is an estate and financial planner at Mangus Finance and President of Asian Industry B2B.