March 10, 2023 / By mobanmarket
LOS ANGELES, CA — California’s Gov. Gavin Newsom flexed the state’s economic might in the nation’s culture war over reproductive rights Wednesday, opting not to renew the state’s $54 million contract with Walgreens after the company bowed to pressure to stop dispensing an abortion drug in states where Republican officials threatened legal action.
In announcing his plans to cut ties with Walgreens, the governor suggested other states could follow suit.
“California will not stand by as corporations cave to extremists and cut off critical access to reproductive care and freedom,” said Newsom. “California is on track to be the fourth largest economy in the world and we will leverage our market power to defend the right to choose.”
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Walgreens made the preemptive decision to stop dispensing the abortion medication Mifepristone in 21 states, including some states where abortions remain legal. The company made the decision after Republican officials in those states threatened to sue.
In a statement Monday, the company said “Walgreens plans to dispense Mifepristone in any jurisdiction where it is legally permissible to do so.”
Newsom accused the company of caving to political pressure while obfuscating about its decision to pull out of states where abortion remains legal.
“This is an attempt to call the question ‘Which side are you on? Whose side are you on?” Newsom told Politico ahead of Wednesday’s announcement. “Are you going to just cower in the face of bullies? Are you going to just roll over?”
Specifically, California withdrew from a deal between the California Department of General Services (DGS) and Walgreens for prescription drugs used by the California Department of Corrections and Rehabilitation (CDCR) and its correctional health care system.
Under this contract, Walgreens has received about $54 million from the State, according to Newsom. The state gave formal notice of its plan to withdraw from a renewal of the contract set to take effect in May.
According to CalMatters, Walgreens accounts for about 10% of the state’s pharmacy market, and is a key prescription provider for Medi-Cal insurers. It remains unclear if that relationship could be impacted by the state’s break with Walgreens.
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