In Review: Senate Bill 41 (delinking, spread pricing, licensing, disclosure, fiduciary) was heard and advanced out of the Assembly Health Committee last week. PCMA testified along with AHIP, emphasizing Governor Gavin Newsom’s (D) recently enacted budget trailer bill, which includes new PBM licensing requirements under the Department of Managed Health Care (DMHC) and detailed data reporting requirements without imposing PBM restrictions. Committee amendments included limiting the PBM fiduciary mandate, which was limited to non-union ERISA plans, and striking NADAC reimbursement and Medi-Cal dispensing fees. The remainder of the bill still only carves out Taft-Hartley plans. There were 61 organizations listed in opposition to the bill.

Up Next: The Assembly Judiciary Committee will hear the bill next week to address the penalty provisions under the Department of Insurance. However, since the bill author has amended his bill to conform with the Governor’s bill giving DMHC oversight, the hearing will be a formality. The Assembly Appropriations Committee will most likely hear the bill when the Legislature returns from its summer recess in mid-August.

If you have any questions, please contact Bill Head at bhead@pcmanet.org.