California is voting on a scheme to control drug prices essentially by following the VA model which requires large discounts in return for a very limited formulary (meaning you can’t take any drug for your condition).
So, let’s say you have high cholesterol and your doctor prescribes Lipitor, but Lipitor is not on the drug plan formulary so you can’t take Lipitor, you must take the drug providing the largest discount and thus is the formulary drug.
It’s simple economics. The manufacturer of the formulary drug makes up the lost revenue from offering a bigger discount in exchange increasing its volume.
Are you good with that? Do you care that your doctor is limited in the prescriptions he or she can provide you?
As a reference here is a list of the drugs that are used to treat high cholesterol (from WebMD).