Pharmacy benefit managers., the official text

An act to add Section 1385.007 to the Health and Safety Code, relating to pharmacy benefit managers.

LEGISLATIVE COUNSEL'S DIGEST

Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law requires a pharmacy benefit manager contracting with a health care service plan or health insurer to secure a license from the Department of Managed Health Care on or after January 1, 2027, or the date on which the department has established the licensure process, whichever is later.
This bill would require the department to maintain a public internet website displaying specified information for each licensed pharmacy benefit manager, including, among other things, the legal name, license number, and license expiration date.

The people of the State of California do enact as follows:

SECTION 1.
Section 1385.007 is added to the Health and Safety Code, to read:
1385.007.
(a) The department shall maintain a public internet website displaying the following information for each licensed pharmacy benefit manager:
(1) Legal name.
(2) License number and status.
(3) Initial licensure date.
(4) License expiration date.
(b) This section shall be implemented utilizing existing resources of the department. If the department determines that additional resources are required for implementation, this section shall become operative only upon appropriation of sufficient funds for this purpose in the annual Budget Act or another measure providing the funding.