"I am pleased to sign SB 41, a bill that will lower health care costs for all Californians. This bill ... represents the most aggressive effort in the country to lower prescription drug costs. California continues to lead the way in lowering costs, increasing transparency, and ensuring that the savings are passed on to payers and consumers," Newsom said in a statement."
"Numerous efforts have been made at the federal level to crack down on the opaque business practices of pharmacy benefit managers, from a lawsuit by the Federal Trade Commission to bills in Congress. But no definitive action has been taken yet. In the absence of federal progress, states are stepping in to fill the gap. Just recently, California Governor Gavin Newsom signed a law (SB 41) that will regulate PBMs."
"Recently, Arkansas passed a law that would ban PBMs from owning pharmacies. Although advocates applauded this law, a federal judge blocked it from being enacted, arguing that it violates the Commerce Clause. This says that states cannot pass laws that unfairly hurt or discriminate against businesses from other states. Arkansas has appealed this decision, and some advocates are still hopeful the law will stand."
Federal efforts to regulate pharmacy benefit managers have produced lawsuits and bills but no definitive national action. States are enacting their own laws to increase transparency and curb PBM practices that inflate drug prices. California enacted SB 41 to regulate PBMs and ban spread pricing, aiming to ensure savings are passed to payers and consumers. PBM market concentration is high, with CVS Caremark, Cigna's Express Scripts, and Optum Rx controlling about 80% of the market. Arkansas passed a ban on PBMs owning pharmacies but a federal judge blocked it on Commerce Clause grounds; the state has appealed. Massachusetts and Missouri also passed laws increasing reporting and payment protections.
Read at MedCity News
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