Bill > AB910

This bill strengthens the regulation of pharmacy benefit managers (PBMs), which are companies that manage prescription drug benefits for health plans. It requires PBMs to hold a fiduciary duty to health plans, meaning they must act in the best interest of the plan, and to pass 100% of specified rebates, fees, and discounts directly back to the health plan to lower costs for enrollees. The bill also mandates that PBMs provide more detailed information to the Department of Health Care Access and Information (HCAI) regarding prescription drug pricing and payments, which HCAI will then include in its annual analysis and share with the Department of Managed Health Care (DMHC). Additionally, PBMs must disclose information about their affiliated entities and group purchasing organizations (GPOs) when registering with the DMHC, and are prohibited from engaging in "spread pricing," a practice where they profit from the difference between what they charge a health plan for a drug and what they pay a pharmacy. PBMs will also be required to submit annual reports on drug dispensing, revenue, expenses, and contracts, which will be compiled and made public by the DMHC, while other submitted data will remain confidential. The bill also clarifies that the DMHC will post links to HCAI's analyses on its website and will take action if a PBM fails to comply with these new requirements.

Budget and Finance, Health and Social Services

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB910