Over the weekend, Governor Gavin Newsom signed SB 41 into law. This landmark legislation, introduced and championed by Senator Scott Wiener, makes California the latest state to hold pharmacy benefit managers (PBMs) accountable and protect patient access to pharmacies.
The law includes the following notable reforms: PBMs must get licensed, can’t steer patients to their own stores, and can’t hit pharmacies with surprise fees or claw backs. It forces PBMs to use a passthrough pricing model. PBMs will no longer be able to pocket the difference between what they charge health plans or the health plans’ clients and what they pay pharmacies. The law also includes a critical transparency provision, requiring PBMs to report payments to pharmacies and rebates every year.
Earlier this year, Governor Newsom also signed AB 116, the health omnibus trailer bill that contained specific statutory language to implement the governor’s PBM reform policies as outlined in the state’s main budget bill.
These victories didn’t happen overnight. They’re the result of years of advocacy and engagement in California from NACDS, our members, and our allies such as the California Pharmacists Association.
“Detrimental delays in care.”
– Dr. Matthew Spinelli, University of California, San Francisco
NACDS helped coordinate a major press conference in San Francisco,facilitated op-eds, enacted comprehensive digital communications campaigns, and kept up the pressure even after the governor vetoed PBM reform last year. Our work paid off. Lawmakers from both parties backed SB 41 almost unanimously, and on Saturday, Governor Newsom enacted the bill into law.
Earlier in the week, NACDS issued a statement praising the passage and signing of the bill, which was picked up in the Sacramento Business Journal.
While we take a moment to celebrate this momentous achievement, the fight for comprehensive PBM reform is far from over. Almost four pharmacies still close every day, and hundreds of millions in patient savings disappear with each delay. Ninety-seven percent of Americans feel it is essential to take steps to reduce the rate of pharmacy closures in the U.S. The public is demanding change, and the PBMs are not backing down.
NACDS calls on every member — keep pushing, keep educating, and keep fighting for the future of pharmacy care. Together, we can turn advocacy into lasting results. SB 41 shows that persistence pays off. Now, let’s build on this win, state by state, and in Washington, D.C.
