In theory. But the invisible hand of the free market seems to be imaginary rather than invisible.

In reality, the insurance companies will all just pocket the difference. They'll then use their increased profits to pay out higher dividends or to finance a stock buyback. If it's a privately owned company, the profits will be distributed to an even smaller number of people.

But despite disagreement over the consequences, we do at least agree that it doesn't matter whether California is going to be lowering the cost for insurers.

And I'm always happy to be proven wrong about things that I'm pessimistic about. If you have strong evidence that there's a large health insurance provider that will cut premiums across the entire country from cost savings I genuinely want to see it.

From the link you provided: >On August 16, 2022, I signed Public Law 117-169, commonly referred to as the Inflation Reduction Act of 2022 (IRA), which will lower the cost of prescription drugs and save millions of Americans hundreds or thousands of dollars per year. The IRA will protect Medicare beneficiaries from catastrophic drug costs by phasing in a cap for out-of-pocket costs at the pharmacy and establishing a $35 monthly cap per prescription for insulin covered by a Medicare prescription drug plan and insulin delivered through traditional pumps.