Gov. Gavin Newsom (D-California) announced Thursday that California would be the first state to create its own prescription drug label.

To help combat the rising cost of health care, Newsom wants to utilize the Californian government’s purchasing power to form contractual relationships between the state and generic-drug manufacturers. The arrangement would increase market competition and lead to lower prescription drug prices.

The proposed agreement enables the state of California to contract with generic-drug manufacturers to produce California-brand prescription medications, within the state, and make them available for sale to the general public.

Under the plan, all residents of America’s most populous state, which is home to over 40 million U.S. citizens, would be offered the option to purchase prescription medicines after obtaining a script from a certified doctor over the counter. 

The terms of the plan, which is part of Newsom’s new budget proposal, would not require the California residents to have a health-care plan.

A detailed description of the proposed plan encompassing the administration and financials surrounding the proposal has not been released.

The California state government is waiting on a more detailed description of the proposition, which is expected to come as the state discusses its budget plans. I

Nearly one-third of the state’s population takes advantage of the state Medicaid program, which was put in place for the lower-income residents of the state.

“A trip to the doctor’s office, pharmacy or hospital shouldn’t cost a month’s pay,” Newsom stated. “These nation-leading reforms seek to put consumers back in the driver seat and lower health-care costs for every Californian.”