California 2017-2018 Regular Session Status: Enacted

SB 17 — Health care: prescription drug costs.

Last action — Chaptered by Secretary of State. Chapter 603, Statutes of 2017.

Track this bill free

No card. One bill, free forever — alerts when it moves.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced December 05, 2016. Enacted.

Prognosis

Likely to advance 74% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 3 sponsors

    1 primary, 2 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

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 (DMHC) and makes a willful violation of the act a crime. Existing law also provides for the regulation of health insurers by the Department of Insurance (DOI) . Existing law requires health care service plans and health insurers to file specified rate information with DMHC or DOI, as applicable, for health care service plan contracts or health insurance policies in the individual or small group markets and for health care service plan contracts and health insurance policies in the large group market. Existing law requires health care service plans and health insurers to also disclose specified supporting information for the rate information described above. Existing law requires the DMHC and DOI, as applicable, to conduct an annual public meeting regarding large group rates within 3 months of posting that information. This bill would require health care service plans or health insurers that file the above-described rate information to report to DMHC or DOI, on a date no later than the reporting of the rate information, specified cost information regarding covered prescription drugs, including generic drugs, brand name drugs, and specialty drugs, dispensed as provided. DMHC and DOI would be required to compile the reported information into a report for the public and legislators that demonstrates the overall impact of drug costs on health care premiums and publish the reports on their Internet Web sites by January 1 of each year. Except for the report, DMHC and DOI would be required to keep confidential all information provided pursuant to these provisions. The bill would also require health care service plans or health insurers that file the above-described rate information to disclose to DMHC and DOI with the rate information specified information regarding the relation of prescription drug costs to plan or insurer spending and premium charges. The bill would instead require DMHC and DOI to conduct an annual public meeting within 4 months of posting the rate information described above. Because a willful violation of these provisions by a health care service plan would be a crime, the bill would impose a state-mandated local program. The bill would require a manufacturer of a prescription drug with a wholesale acquisition cost of more than $40 that is purchased or reimbursed by specified purchasers, including state agencies, health care service plans, health insurers, and pharmacy benefit managers, to notify the purchaser of an increase in the wholesale acquisition cost of a prescription drug if the increase in the wholesale acquisition cost for a course of therapy, as defined, exceeds a specified threshold. The bill would require that notice to be given at least 60 days prior to the planned effective date of the increase. Commencing no earlier than January 1, 2019, the bill would require the manufacturer to notify the Office of Statewide Health Planning and Development (OSHPD) of specified information relating to that increase in wholesale acquisition cost on a quarterly basis at a time and in a format prescribed by the office. The bill would require the manufacturer to notify OSHPD of specified information relating to the wholesale acquisition cost, marketing, and usage of a new prescription drug if the cost exceeds a specified threshold, and would require OSHPD to publish that information on its Internet Web site, as specified. The bill would require OSHPD to enforce the provisions requiring manufacturer reporting to OSHPD and would subject a manufacturer to liability for a civil penalty if the information described above is not reported. The bill would authorize OSHPD to adopt regulations or issue guidance for the implementation of these provisions. The bill would require the California Research Bureau to report to the Legislature on the implementation of these provisions, and would subject these provisions to review by the appropriate policy committees of the Legislature, as specified. Existing law establishes the California Health Data and Planning Fund within the office for the purpose of receiving and expending certain fee revenues. Existing law establishes the Managed Care Fund for the purpose of supporting the administration of DMHC. Existing law establishes the Insurance Fund for, among other things, the support of DOI as authorized in the annual Budget Act. This bill would prohibit the use of any moneys in the fund from being used for the implementation of these provisions. The bill would provide that funding for the office to conduct the activities described above shall be provided, subject to appropriation by the Legislature, from transfers of moneys from the Managed Care Fund and the Insurance Fund, as specified. This bill would provide that the above-described provisions 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

Action History

  1. Chaptered by Secretary of State. Chapter 603, Statutes of 2017.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 4 p.m.

  4. Assembly amendments concurred in. (Ayes 32. Noes 8. Page 2837.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 66. Noes 9. Page 3167.) Ordered to the Senate.

  7. Read second time. Ordered to third reading.

  8. Read second time and amended. Ordered to second reading.

  9. From committee: Do pass as amended. (Ayes 12. Noes 3.) (September 1).

  10. August 23 set for first hearing. Placed on APPR. suspense file.

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

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

  13. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (June 27).

  14. Referred to Com. on HEALTH.

  15. In Assembly. Read first time. Held at Desk.

  16. Read third time. Passed. (Ayes 28. Noes 10. Page 1262.) Ordered to the Assembly.

  17. Read second time. Ordered to third reading.

  18. From committee: Do pass. (Ayes 5. Noes 2. Page 1176.) (May 25).

  19. Set for hearing May 25.

  20. May 15 hearing: Placed on APPR. suspense file.

  21. Set for hearing May 15.

  22. May 8 hearing postponed by committee.

  23. Set for hearing May 8.

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

  25. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 2. Page 807.) (April 19).

  26. Set for hearing April 19.

  27. Re-referred to Com. on HEALTH.

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

  29. Referred to Com. on RLS.

  30. From printer. May be acted upon on or after January 5.

  31. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Chiu · Cosponsor
  • Hernandez · Primary
  • Wood · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 2 co-sponsors · 119 not signed on · 6 voted No

Sponsors (1)

  • Hernandez

Co-sponsors (2)

  • Chiu
  • Wood

Not signed on (119)

119 members have not signed on to this bill.

Show all 119 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Unfinished Business SB17 Hernandez et al. Concurrence

Passed 32 Yea · 8 Nay
Party YeaNayPresentNot Voting
Unaffiliated 28700
Democratic 4100
Total 32800
% of votes cast 80%20%0%0%
How each member voted (40)
Member Party Vote
Anderson — Nay
Bates — Nay
Hertzberg — Yea
Lara — Yea
Mendoza — Yea
Morrell — Nay
Nielsen — Nay
Skinner — Yea
Wieckowski — Yea
Cannella — Yea
Beall — Yea
Bradford — Yea
Dodd — Yea
Glazer — Yea
Hernandez — Yea
Atkins — Yea
Portantino — Yea
Hill — Yea
De León — Yea
Hueso — Yea
Mitchell — Yea
Allen — Yea
Leyva — Yea
Monning — Yea
Moorlach — Yea
Newman — Yea
Pan — Yea
Roth — Yea
Vidak — Yea
Wilk — Yea
Fuller — Yea
Galgiani — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
Mark Stone — Nay
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Nay
Stern, Henry I. Democratic Yea
Wiener, Scott D. Democratic Yea

Official roll call →

SB 17 Hernandez Senate Third Reading By WOOD

Passed 66 Yea · 9 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 47803
Democratic 15000
Republican 4101
Total 66904
% of votes cast 84%11%0%5%
How each member voted (79)
Member Party Vote
Acosta — Yea
Bigelow — Nay
Bloom — Yea
Brough — Not Voting
Harper — Nay
Jones-Sawyer — Yea
Maienschein — Yea
Mathis — Yea
Mayes — Not Voting
Obernolte — Nay
Ridley-Thomas — Yea
Steinorth — Nay
Voepel — Not Voting
Wood — Yea
Eggman — Yea
Chau — Yea
Medina — Yea
Gonzalez Fletcher — Yea
Burke — Yea
Salas — Yea
Friedman — Yea
Gray — Yea
Bocanegra — Yea
Gloria — Yea
Rubio — Yea
Holden — Yea
Kiley — Nay
Levine — Yea
Fong — Nay
Low — Yea
McCarty — Yea
Melendez — Yea
Baker — Yea
Chiu — Yea
Chu — Yea
Chávez — Nay
Cooley — Yea
Cooper — Yea
Mullin — Yea
Nazarian — Yea
O'Donnell — Yea
Quirk — Yea
Rendon — Yea
Rodriguez — Yea
Santiago — Yea
Thurmond — Yea
Ting — Yea
Waldron — Yea
Weber — Yea
Cunningham — Yea
Dababneh — Yea
Daly — Yea
Frazier — Yea
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Yea
Mark Stone — Yea
Travis Allen — Nay
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Berman, Marc Democratic Yea
Bonta, Mia Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Cervantes, Sabrina Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Irwin, Jacqui Democratic Yea
Kalra, Ash Democratic Yea
Limón, Monique Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Chen, Phillip Republican Yea
Choi, Steven S. Republican Not Voting
Dahle, Megan Republican Yea
Flora, Heath Republican Nay
Gallagher, James Republican Yea
Lackey, Tom Republican Yea

Official roll call →

Subjects

healthcare health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 17 do?
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 (DMHC) and makes a willful violation of the act a crime. Existing law also provides for the regulation of health insurers by the Department of Insurance (DOI) . Existing law requires health care service plans and health insurers to file specified rate information with DMHC or DOI, as applicable, for health care service plan contracts or health insurance policies in the individual or small group markets and for health care service plan contracts and health insurance policies in the large group market. Existing law requires health care service plans and health insurers to also disclose specified supporting information for the rate information described above. Existing law requires the DMHC and DOI, as applicable, to conduct an annual public meeting regarding large group rates within 3 months of posting that information. This bill would require health care service plans or health insurers that file the above-described rate information to report to DMHC or DOI, on a date no later than the reporting of the rate information, specified cost information regarding covered prescription drugs, including generic drugs, brand name drugs, and specialty drugs, dispensed as provided. DMHC and DOI would be required to compile the reported information into a report for the public and legislators that demonstrates the overall impact of drug costs on health care premiums and publish the reports on their Internet Web sites by January 1 of each year. Except for the report, DMHC and DOI would be required to keep confidential all information provided pursuant to these provisions. The bill would also require health care service plans or health insurers that file the above-described rate information to disclose to DMHC and DOI with the rate information specified information regarding the relation of prescription drug costs to plan or insurer spending and premium charges. The bill would instead require DMHC and DOI to conduct an annual public meeting within 4 months of posting the rate information described above. Because a willful violation of these provisions by a health care service plan would be a crime, the bill would impose a state-mandated local program. The bill would require a manufacturer of a prescription drug with a wholesale acquisition cost of more than $40 that is purchased or reimbursed by specified purchasers, including state agencies, health care service plans, health insurers, and pharmacy benefit managers, to notify the purchaser of an increase in the wholesale acquisition cost of a prescription drug if the increase in the wholesale acquisition cost for a course of therapy, as defined, exceeds a specified threshold. The bill would require that notice to be given at least 60 days prior to the planned effective date of the increase. Commencing no earlier than January 1, 2019, the bill would require the manufacturer to notify the Office of Statewide Health Planning and Development (OSHPD) of specified information relating to that increase in wholesale acquisition cost on a quarterly basis at a time and in a format prescribed by the office. The bill would require the manufacturer to notify OSHPD of specified information relating to the wholesale acquisition cost, marketing, and usage of a new prescription drug if the cost exceeds a specified threshold, and would require OSHPD to publish that information on its Internet Web site, as specified. The bill would require OSHPD to enforce the provisions requiring manufacturer reporting to OSHPD and would subject a manufacturer to liability for a civil penalty if the information described above is not reported. The bill would authorize OSHPD to adopt regulations or issue guidance for the implementation of these provisions. The bill would require the California Research Bureau to report to the Legislature on the implementation of these provisions, and would subject these provisions to review by the appropriate policy committees of the Legislature, as specified. Existing law establishes the California Health Data and Planning Fund within the office for the purpose of receiving and expending certain fee revenues. Existing law establishes the Managed Care Fund for the purpose of supporting the administration of DMHC. Existing law establishes the Insurance Fund for, among other things, the support of DOI as authorized in the annual Budget Act. This bill would prohibit the use of any moneys in the fund from being used for the implementation of these provisions. The bill would provide that funding for the office to conduct the activities described above shall be provided, subject to appropriation by the Legislature, from transfers of moneys from the Managed Care Fund and the Insurance Fund, as specified. This bill would provide that the above-described provisions 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.
Who sponsors SB 17?
SB 17 is sponsored by Chiu, Hernandez, and Wood.
What is the current status of SB 17?
This bill has been enacted into law. Introduced December 05, 2016. Enacted.
Where can I track SB 17?
Track SB 17 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on SB 17

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of SB 17

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →