California Assembly Approves New Rules for Drug Price Middlemen

Sept. 9, 2025, 9:07 PM UTC

Companies managing pharmacy benefits for health insurers and employers would face new curbs on their drug pricing under legislation the California Assembly passed on Tuesday.

Assemblymembers voted 55-1 for the measure (SB 41) that would prohibit spread pricing by pharmacy benefit managers, the practice where those middlemen companies charge a health plan more for a drug than what it paid to a pharmacy.

The bill would also bar PBMs from requiring patients use only specified affiliated pharmacies.

Senators are looking to clear the bipartisan measure before adjourning Friday and send it to Gov. Gavin Newsom (D), who vetoed ...

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