California Takes Action on Pharmacy Benefit Managers for Affordable Medications
Understanding California's Proposed PBM Regulations
California's Governor Gavin Newsom is poised to make a significant decision regarding the regulation of pharmacy benefit managers (PBMs) in the state. With over 25 states already implementing similar regulations, California's move is seen as a crucial step towards addressing the economic pressures faced by consumers in relation to prescription drugs.
Key Features of the Legislation
- Mandatory Licensing: The law mandates that PBMs apply for a license by 2027.
- 100% Rebate Pass-Through: Licensed PBMs must pass along all pharmaceutical manufacturers' rebates to health plans.
- Prohibition of Steering Practices: PBMs will be restricted from steering patients to their owned pharmacies.
- Equitable Reimbursements: Independent pharmacies will be protected from lower insurance reimbursements compared to larger chains.
Senator Scott Wiener emphasizes that this legislation aims to tackle serious abuses observed in PBM practices. Many supporters argue that regulatory measures in the other states have shown a decrease in consumer costs relating to prescription medications, paving the way for more transparent and equitable healthcare services.
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