Senate Bill 786, authored by Senator Anthony J. Portantino (D – Burbank), was signed into law by Governor Newsom. SB 786 permits health care providers and pharmacies to continue to provide high quality affordable care, low cost drugs, and services to low income and uninsured patients. It ensures that health care providers benefit fully from the purchase of discounted drugs and can use those savings to improve access to care and lower prescriptions at their facilities.
“California needs to protect patients and health care providers to ensure that they are able to offer and receive affordable prescription drugs,” stated Senator Portantino. “SB 786 puts additional oversight on pharmacy benefit managers to protect prescription services for California’s rural and most vulnerable communities. I am grateful to the Governor for signing this bill into law, helping to create healthcare equity, and ensuring that all patients who need prescription medication are able to receive it.”
In 1992, Congress established the 340B Drug Pricing Program to protect patients, hospitals, clinics, and other health care entities from rising prescription drug costs by requiring pharmaceutical manufacturers to offer discounted drugs. This program has allowed qualifying health care providers to treat more low income and uninsured patients and improve community health standards across the nation.
Unfortunately, for-profit pharmacy benefit managers (PBMs), who negotiate rebates with manufacturers, have been able to garner significant profits and have been charging higher prices for life saving drugs, refusing to renew contracts, and preventing covered entities from entering into preferred pharmacy networks. SB 786 will protect health care providers and the communities they serve by preventing PBMs from discriminating against qualified 340B pharmacies. As a result, patients and clinics will see a benefit.
