Bill > SB41

This bill aims to regulate pharmacy benefit managers (PBMs) in California by implementing several key provisions to increase transparency, fairness, and cost control in prescription drug pricing. Starting January 1, 2026, the bill prohibits PBMs from discriminating against non-affiliated pharmacies, requiring patients to use only affiliated pharmacies, or engaging in spread pricing, where PBMs charge health plans more for prescription drugs than they pay pharmacies. PBMs will be limited to earning income solely from a flat pharmacy benefit management fee, and they must use a passthrough pricing model where the amount paid to pharmacies is exactly the same as what health plans are charged. The bill also requires PBMs to direct 100 percent of manufacturer rebates to health plans to offset patient costs, and it prevents PBMs from imposing unfair contract terms that restrict pharmacy competition. Additionally, the bill mandates that health insurance policies and health care service plan contracts cannot calculate patient cost-sharing at an amount higher than the actual price paid for a prescription drug. The Attorney General is empowered to enforce these provisions, with potential civil penalties ranging from $1,000 to $7,500 per violation, and the ability to seek injunctions and other equitable remedies.

Budget and Finance, Health and Social Services, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB41