Golden State Today

State Senator Scott Wiener has introduced Senate Bill 41 (SB 41) to regulate pharmacy benefit managers (PBMs) in California. The bill aims to increase transparency, lower drug costs, and prevent anti-competitive practices. This announcement was made via a press release on December 4, 2024.

According to the press release, PBMs, which do not manufacture drugs, now control nearly all prescription drug distribution for insured Americans, capturing over half of every dollar spent on brand-name medications. SB 41 seeks to prohibit deceptive pricing practices, restrict patient steering, and increase transparency by requiring PBMs to be licensed through the California Department of Insurance. The bill has garnered support from organizations such as the California Pharmacists Association, San Francisco AIDS Foundation, and Los Angeles LGBT Center.

In 2022, drug spending in California surged by 12%, outpacing the 4% rise in health insurance premiums. This increase has made prescription costs an increasing financial burden. Over half of Californians delayed or skipped medical care due to affordability concerns, while one in three carried medical debt. Meanwhile, PBMs now capture over half of every dollar spent on brand-name drugs, reducing the share going to manufacturers.

Patients Daily reports that the three largest PBMs drive up drug costs through practices like spread pricing and rebate agreements that incentivize higher list prices. NCPA CEO Douglas Hoey urged the newly formed Department of Government Efficiency (DOGE) to investigate PBMs, calling them "middlemen" who manipulate pricing and restrict competition. President Donald Trump said PBMs profit more than drug manufacturers while contributing to rising prescription costs for consumers.

According to his website, Senator Wiener represents California’s 11th Senate District, covering San Francisco and nearby areas. His focus includes housing affordability, transportation, healthcare, and climate policy.

The California State Senate comprises 40 senators addressing housing, healthcare, and climate issues while encouraging public engagement through hearings and comments.