Legislation makes it illegal for pharmacy benefit managers (PBMs) to siphon money away from safety net providers and health care services intended for low-income Californians
LOS ANGELES (October 8, 2023) AIDS Healthcare Foundation (AHF) thanked California Governor Gavin Newsom for signing SB 786, a bill that will make it illegal for pharmacy benefit managers (PBMs) to discriminate against 340B Drug Pricing Program participants. AHF also thanked Senator Anthony Portantino ( D-Burbank), who authored and successfully carried the bill. The legislation, which will now protect thousands of organizations serving low-income Californians across the state, cleared the California State Senate with unanimous support in early September.
“PBMs should not be allowed to steal the savings intended for safety net providers for themselves. SB 786 effectively stops pharmacy benefit managers from being able to pickpocket safety net providers,” said Michael Weinstein, founder and president of AHF. “Reining in PBM abuse remains a nonpartisan issue that continues to pick up steam nationwide. We thank Senator Portantino for authoring and carrying this bill and Governor Newson for signing 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.
