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California Bans Spread Pricing in Pharmacy Benefit Reform

10/12/2025

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Summary

Story summary

California Governor Gavin Newsom signed Senate Bill 41 on October 11, 2025 to regulate pharmacy benefit managers (PBMs).
The law takes effect in 2026 and bans spread pricing and certain noncompetitive practices.
Supporters, including pharmacists, say PBMs harmed independent pharmacies and inflated drug prices.
The Pharmaceutical Care Management Association contends the bill may raise premiums for consumers.

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Story summary

California Governor Gavin Newsom signed Senate Bill 41 on October 11, 2025 to regulate pharmacy benefit managers (PBMs).
The law takes effect in 2026 and bans spread pricing and certain noncompetitive practices.
Supporters, including pharmacists, say PBMs harmed independent pharmacies and inflated drug prices.
The Pharmaceutical Care Management Association contends the bill may raise premiums for consumers.