Assembly advances SB 41 targeting pharmacy benefit manager practices blamed for pharmacy closures and higher drug costs

SACRAMENTO — The Assembly Health Committee on July 8 voted to send SB 41, a broad package of reforms aimed at pharmacy benefit managers (PBMs), to the Judiciary Committee after extensive testimony from independent pharmacists, patient advocates and PBM and plan representatives.

Senator Scott Wiener, the bill’s sponsor, said PBMs began as administrative contractors for health plans but have become vertically integrated firms that now “own the health plans, the pharmacy down the street, the mail order pharmacy” and have contractual incentives that can favor higher list prices and PBM‑owned dispensing. Wiener said the bill (as amended to reflect earlier budget licensure language) would…