Health Care

Calif. passes major PBM overhaul

The bill now awaits Gov. Gavin Newsom’s signature.
A CVS Pharmacy retailer drug store with a MinuteClinic and Health Hub is in the Harlem neighborhood of New York City on Friday, March 3, 2023. (AP Photo/Ted Shaffrey)

California is on the verge of joining a nationwide movement to curb pharmacy benefit managers under a bill headed to Gov. Gavin Newsom’s (D) desk.

The bill, which the Assembly unanimously passed Wednesday and the Senate gave a final sign-off to Thursday, would establish licensure and regulation requirements for PBMs under the state Department of Insurance; require PBMs to report certain information to the state, including aggregate amounts of the fees they charge pharmacies and the rebates they receive for drugs; and require PBMs to pass on 100% of the prescription drug manufacturer rebates they receive from drug manufacturers to the health plan or insurer.

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