California Voters To Decide On Drug Price Initiative

SACRAMENTO (CBS / AP) -- An initiative to limit the price the state pays for prescription drugs has qualified for California's 2016 ballot.

The proposal would bar any state agency from paying more for a prescription drug than the negotiated price the U.S. Department of Veterans Affairs pays.

It's backed by the California AIDS Healthcare Foundation. Supporters said Friday that it would rein in exorbitant prices on hundreds of vital medications.

Pharmaceutical companies call the initiative "misleading and flawed." Spokeswoman Kathy Fairbanks says it will increase the cost of prescription drugs for veterans and limit drug choices for all Californians.

The state Legislative Analyst's Office says it was unable to obtain information about how much the VA and the state pay for various drugs. That means officials couldn't assess the fiscal effect to the state.