CALIFORNIA EYES 60% DISCOUNTS ON GENERIC Rxs

Californians with incomesof up to 3 times the state'spoverty level will be eligiblefor discounts of up to60% on prescriptionsfor generic drugs,under the newdrug assistanceplan unveiled byGov Arnold Schwarzenegger.State residents whose prescriptionsare filled with more-expensivebranded pharmaceuticals will beentitled to a smaller, 40% discountunder the program.

Rather than subsidizing pharmaceuticalassistance through tax revenues,the California plan would callon drug companies to give discountsto up to 5 million uninsured, low-incomeresidents within 5 years.Manufacturers not offering discountswould be dropped from the state'sMedi-Cal program.

Schwarzenegger's plan, which requiresapproval from both the state legislatureand the federal government,would provide discounted prescriptionsto 4-member families earning asmuch as $60,000 annually.