Portantino Prescription Drug Pricing Bill Passes Assembly Health Committee

For Immediate Release: July 11, 2023

Contact: Lerna Shirinian, (818) 409-0400

Portantino Prescription Drug Pricing Bill Passes Assembly Health Committee

Sacramento, California – Senate Bill 786, authored by Senator Anthony J. Portantino (D – Burbank), passed the Assembly Health Committee today. SB 786 would allow health care providers and pharmacies to continue to provide high quality affordable care, low cost drugs, and services to low income and uninsured patients by ensuring that these health care providers can benefit fully from the purchase of discounted drugs and use those savings to improve access to care and prescriptions at their facilities.

“California needs to protect patients and health care providers to ensure that they are able to offer and receive affordable prescription drugs,” stated Senator Portantino. “SB 786 creates health care equity and ensures that all patients who need treatment are able to receive it.”

In 1992, Congress established the 340B Drug Pricing Program to protect patients, hospitals, clinics, and other health care entities from rising prescription drug costs by requiring pharmaceutical manufacturers to offer discounted drugs. This program has allowed qualifying health care providers to treat more low income and uninsured patients and improve community health standards across the nation.

Unfortunately, for-profit pharmacy benefit managers (PBMs), who negotiate rebates with manufacturers, have been able to garner significant profits and have been charging higher prices for life saving drugs, refusing to renew contracts, and preventing covered entities from entering into preferred pharmacy networks. SB 786 will protect health care providers and the communities they serve by preventing PBMs from discriminating against qualified 340B pharmacies.

###