Committee reiterates support for PBM regulation bill as pharmacy stakeholders urge swift action

The California State Board of Pharmacy Legislation and Regulation Committee reviewed Senate Bill 41, which would establish regulation of pharmacy benefit managers under the Department of Insurance, and heard public comment urging quick advancement of the measure.

The measure would create a regulatory framework for PBMs; committee materials note the board has received complaints from consumers and providers about PBM conduct. Jessie Crowley, chairperson of the committee, said the board’s previously adopted support position on SB 41 remains appropriate and invited member comments. The committee did not record a new roll-call vote on SB 41 at this meeting.

In public comment, Sean Kim of the California Pharmacists Association, a sponsor of the bill, told the committee the measure “includes urgently needed safeguards that address PBM abuses contributing to pharmacy closures” and called for attention to its provisions beyond licensure, including transparency, reimbursements and accountability for patient steering. Kim said the bill “helps ensure fair practices and support pharmacy sustainability and…protecting access to essential medications.”

Members noted the bill is similar to a prior measure, SB 966, which the board supported last year but the governor vetoed. Board materials show SB 41 had been referred to the Assembly Health and Judiciary committees; no committee-level vote on an updated board position was taken during this session.

Background materials in the meeting packet and public comments submitted to the board cite consumer complaints and provider concerns about PBM practices, and the committee discussion framed SB 41 as a potential tool to address those issues. The committee moved on to other items after taking public testimony.