PBM Reform Bill Heads to California Governor With Unanimous Support, says AHF

SB 786 stops Pharmacy Benefit Managers from discriminating against 340B safety net providers; Legislation will protect thousands of organizations across state

The California State Senate voted unanimously Wednesday in favor of SB 786, which would make it illegal for pharmacy benefit managers (PBMs) to discriminate against 340B Drug Pricing Program participants.

The bill, now on its way to Governor Gavin Newsom for signature, received zero “no” votes in both chambers and has broad support from the California Hospital Association, the California Pharmacists Association, and the California Primary Care Association, among others. AIDS Healthcare Foundation (AHF) and Senator Anthony J. Portantino (D – Burbank) authored the legislation, which when signed, will make California the 30^th state to outlaw discriminatory reimbursement by PBMs.

“Thousands of healthcare providers and their patients across California will benefit from this legislation which stops pharmacy benefit managers from pickpocketing safety net providers,” said Laura Boudreau, AHF Chief of Operations. “This is a non-partisan issue which continues to pick up steam nationwide. PBMs should not be allowed to steal the savings intended for safety net providers for themselves.”

“California needs to protect patients and health care providers to ensure that they are able to offer and receive affordable prescription drugs,” stated Senator Portantino. “SB 786 will set additional oversight on pharmacy benefit managers to protect services for California’s rural and most vulnerable communities. It creates health care equity and endeavors to ensure that all patients who need treatment are able to receive it.”

Under federal law, thousands of safety net providers across the state are allowed to purchase discounted drugs from drug manufacturers and use the savings to provide more services to more people, especially low-income uninsured and underinsured Californians. PBMs have been siphoning off these drug savings to boost their profits thus diminishing these vital resources that are used for critical safety net services.

Senator Portantino introduced SB 786 in February. The Assembly reviewed the bill over the summer and passed it unanimously last month.

AIDS Healthcare Foundation (AHF), the world’s largest HIV/AIDS healthcare organization, provides cutting-edge medicine and advocacy to more than 1.8 million individuals across 45 countries, including the U.S. and in Africa, Latin America/Caribbean, the Asia/Pacific Region, and Eastern Europe. To learn more about AHF, visit us online at AIDShealth.org, find us on Facebook, follow us on Instagram, Twitter, and TikTok, and subscribe to our AHFter Hours podcast.

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SB 786 will set additional oversight on pharmacy benefit managers to protect services for California’s rural and most vulnerable communities. It creates healthcare equity and endeavors to ensure that all patients who need treatment are able to receive it