California Bill Proposes Lower Out-Of-Pocket Pharmacy Costs, Would Require Health Plans To Pass On At Least 90% Of Negotiated Rebates

The California legislature is considering Assembly Bill (AB) 933, which proposes reducing consumer out-of-pocket pharmacy costs by requiring health plans and pharmacy benefit managers (PBMs) to pass on at least 90% of any negotiated rebates at the pharmacy dispensing or administering the medication. On February 25, 2021, AB 933 was referred to legislature's Committee on Health. The goal of AB 933 is to make prescriptions more affordable for consumers, without drastically increasing health insurance premiums.

AB 933 includes a provision to protect health plan and PBM trade secrets. It prohibits health care service plans, health insurers, or . . .