California Passes Law to Regulate Pharmacy Benefit Managers

California Governor Gavin Newsom has signed Senate Bill 41, which aims to regulate pharmacy benefit managers (PBMs) and curb drug costs in the state, reports the Sacramento Bee. Under the new law, PBMs must obtain a license from the state, submit to regulatory oversight, and comply with disclosure requirements about rebates and claims. The bill also prohibits spread pricing practices, beginning in 2026. Supporters say the measure will increase accountability and help lower out-of-pocket costs for consumers.