California Gov. Gavin Newsom will soon decide whether to enact new regulations on pharmacy benefit managers in an attempt to address rising prescription drug costs, the Los Angeles Times reported Sept. 16.
Twenty-five states already have passed similar laws. The California bill, which already has passed the state Legislature, aims to mandate that PBMs pass 100% of the manufacturer rebates to insurers and restrict the ability to favor their own pharmacies over independents. Supporters of the bill have argued it could lower costs, while opponents have warned it might drive up insurance premiums and weaken PBM bargaining power, according to the report.
Mr. Newsom has until Sept. 30 to decide on the bill; he has vetoed similar measures, citing cost concerns.