California Health and Safety Code

§ 1385.0029

HSC § 1385.0029 Effective Jan 1, 2026Div. 2 · Ch. 2.2 · Art. 6.1

Statute text

(a)A pharmacy benefit manager shall not derive income from pharmacy benefit management services provided to a payer in this state except for income derived from a pharmacy benefit management fee for pharmacy benefit management services provided. The amount of any pharmacy benefit management fee shall be set forth in the agreement between the pharmacy benefit manager and the payer. The pharmacy benefit manager shall disclose the amount and types of the pharmacy benefit management fees to the payer.

(b)A pharmacy benefit manager shall use a passthrough pricing model.

(c)A pharmacy benefit manager, group purchasing organization, and affiliated entity shall direct 100 percent of all prescription drug manufacturer rebates received to the payer or program, if the contractual arrangement delegates the negotiation of rebates to the pharmacy benefit manager, group purchasing organization, or affiliated entity, for the sole purpose of offsetting defined cost sharing, deductibles, and coinsurance contributions and reducing premiums of plan participants.

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Legislative history

Added by Stats. 2025, Ch. 605, Sec. 11. (SB 41) Effective January 1, 2026.