SB 41 — Pharmacy benefits.

Summary

Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law requires a pharmacy benefit manager engaging in business with a health care service plan or health insurer to secure a license from the Department of Managed Health Care on or after January 1, 2027, or the date on which the department has established the licensure process, whichever is later. This bill would prohibit a pharmacy benefit manager from, among other things, requiring use of only an affiliated pharmacy, as specified, and from imposing requirements, conditions, or exclusions that discriminate against a nonaffiliated pharmacy in connection with dispensing drugs. The bill would limit a pharmacy benefit manager's income to that derived from a pharmacy benefit management fee for pharmacy benefit management services provided, and would require a pharmacy benefit manager to use a passthrough pricing model. The bill would authorize the Attorney General to recover specified civil penalties and receive equitable relief for violations of the pharmacy benefit manager licensing provisions. Because a violation of these provisions would be a crime, the bill would impose a state-mandated local program. The bill would also require a contract between a health insurer and a pharmacy benefit manager issued, amended, or renewed on or after January 1, 2027, or the date on which the Department of Managed Health Care has established the pharmacy benefit manager licensure process, whichever is later, to require the pharmacy benefit manager to be licensed and in good standing with the Department of Managed Health Care. Existing law requires a health care service plan contract or health insurance policy that provides coverage for outpatient prescription drugs to cover medically necessary prescription drugs and subjects those policies to certain limitations on cost sharing and the placement of drugs on formularies. Existing law limits the maximum amount an enrollee or insured may be required to pay at the point of sale for a covered prescription drug to the lesser of the applicable cost-sharing amount or the retail price, and requires that payment apply to the applicable deductible. This bill would prohibit a health care service plan contract or health insurance policy issued, amended, or renewed on or after January 1, 2026, that provides prescription drug coverage from calculating an enrollee's or insured's cost sharing at an amount that exceeds the actual rate paid by the plan or insurer for the prescription drug, except as specified, and would require the contract or policy to include specified cost-sharing provisions. The bill would prohibit a contract between a pharmacy benefit manager and a health care service plan or health insurer that is executed, amended, or renewed on or after January 1, 2026, from authorizing spread pricing. Because a willful violation of the bill's requirements relative to health care service plans would be a crime, the bill would impose a state-mandated local program. This bill would declare that it does not narrow, abrogate, or otherwise alter the authority of the Attorney General to maintain or restore competitive, fair, and honest markets and prosecute violations of law, and would declare that the provisions of this bill are severable. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Text

• Chaptered 10/11/25 - Chaptered Current pdf October 11, 2025
• Enrolled 09/12/25 - Enrolled pdf September 12, 2025
• Amended 09/04/25 - Amended Assembly pdf September 04, 2025
• Amended 09/02/25 - Amended Assembly pdf September 02, 2025
• Amended 07/17/25 - Amended Assembly pdf July 17, 2025
• Amended 07/09/25 - Amended Assembly pdf July 09, 2025
• Amended 06/30/25 - Amended Assembly pdf June 30, 2025
• Amended 05/01/25 - Amended Senate pdf May 01, 2025
• Amended 03/17/25 - Amended Senate pdf March 17, 2025
• Introduced 12/03/24 - Introduced pdf December 03, 2024
• SB41 View text html

Action History

1. October 11, 2025

   Chaptered by Secretary of State. Chapter 605, Statutes of 2025.

2. October 11, 2025

   Approved by the Governor.

3. September 17, 2025

   Enrolled and presented to the Governor at 2 p.m.

4. September 10, 2025

   Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2819.) Ordered to engrossing and enrolling.

5. September 09, 2025

   In Senate. Concurrence in Assembly amendments pending.

6. September 09, 2025

   Read third time. Passed. (Ayes 69. Noes 2. Page 3081.) Ordered to the Senate.

7. September 04, 2025

   Ordered to third reading.

8. September 04, 2025

   Read third time and amended.

9. September 03, 2025

   Read second time. Ordered to third reading.

10. September 02, 2025

    Read second time and amended. Ordered to second reading.

11. August 29, 2025

    From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 29).

12. August 20, 2025

    August 20 set for first hearing. Placed on APPR. suspense file.

13. July 17, 2025

    Read second time and amended. Re-referred to Com. on APPR.

14. July 16, 2025

    From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (July 15).

15. July 09, 2025

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.

16. July 09, 2025

    From committee: Do pass and re-refer to Com. on JUD. (Ayes 14. Noes 0.) (July 8). Re-referred to Com. on JUD.

17. June 30, 2025

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on HEALTH.

18. June 05, 2025

    Referred to Coms. on HEALTH and JUD.

19. May 28, 2025

    In Assembly. Read first time. Held at Desk.

20. May 28, 2025

    Read third time. Passed. (Ayes 37. Noes 0. Page 1276.) Ordered to the Assembly.

21. May 23, 2025

    Read second time. Ordered to third reading.

22. May 23, 2025

    From committee: Do pass. (Ayes 6. Noes 0. Page 1189.) (May 23).

23. May 16, 2025

    Set for hearing May 23.

24. May 12, 2025

    May 12 hearing: Placed on APPR. suspense file.

25. May 02, 2025

    Set for hearing May 12.

26. May 01, 2025

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR.

27. April 30, 2025

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 938.) (April 29). Re-referred to Com. on APPR.

28. April 24, 2025

    From committee: Do pass and re-refer to Com. on JUD. (Ayes 11. Noes 0. Page 867.) (April 23). Re-referred to Com. on JUD.

29. April 08, 2025

    Set for hearing April 29 in JUD. pending receipt.

30. April 02, 2025

    Set for hearing April 23.

31. March 17, 2025

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on HEALTH.

32. January 29, 2025

    Referred to Coms. on HEALTH and JUD.

33. January 06, 2025

    Read first time.

34. December 04, 2024

    From printer. May be acted upon on or after January 3.

35. December 03, 2024

    Introduced. To Com. on RLS. for assignment. To print.

Sponsors

• Scott D. Wiener · Primary

Votes

Subjects