Passage of PBM Bill in CA, States’ Tussle with Drug Makers Over Discounted Drugs

CA Lawmakers Pass PBM Legislation

California joined a nationwide movement to tighten restrictions on pharmacy benefit managers with the approval of SB 966 days before adjourning its legislative session on Aug. 31. If signed by Gov. Gavin Newsom (D) the measure will establish licensing requirements for PBMs and require them to report to the state’s Department of Insurance the fees they charge pharmacies and the rebates they receive from drug manufacturers. The bill would also require PBMs to pass along 100% of those rebates to health plans or insurers. (PLURIBUS NEWS, LEXISNEXIS STATE NET)

States Forcing Drugmakers to Keep Selling Drugs at Discount

In 2021, Arkansas became the first state to pass a law requiring pharmaceutical manufacturers that participate in Medicaid to sell drugs to contract pharmacies at a discount under the federal 340B program. Louisiana followed suit in 2023. This year, Kansas (SB 28), Maryland (HB 1056), Mississippi (HB 728), Missouri (SB 751) and West Virginia (SB 325) enacted similar legislation. And other states, including New York (AB 7789), considered similar measures.

The recent legislative actions are pushback against the restriction of 340B drug sales by pharmaceutical companies, which contend the 340B program has expanded beyond its original intent. As of September 2023, 25 drugmakers had done so. (STATELINE)

—Compiled by SNCJ Managing Editor KOREY CLARK

Visit our webpage to connect with a LexisNexis® State Net® representative and learn how the State Net legislative and regulatory tracking service can help you identify, track, analyze and report on relevant legislative and regulatory developments.