Assemblyman Jim Wood’s (D-Healdsburg) bill to regulate pharmacy benefit managers stalled in the Senate this session for an issue the state administration had with a disclosure requirement, according to Wood’s office.
“AB 315, a bill I introduced in this first year of a two-year session, would regulate pharmaceutical benefit managers (PBMs) and has received a great deal of attention. This bill gained momentum and support throughout the year, but discussions with the Administration revealed one final hurdle that requires more discussion than the current legislative session allows,” Wood said in a release.
Wood had recently launched a digital ad campaign to help draw attention the bill’s effort, but lack of attention was apparently not the problem.
PBMs are contracted by health care providers to help manage prescription drug benefit programs, like Medicare Part D, and often negotiate discounts and rebates with drug manufacturers. Wood credits them with adding to escalating prescription drug prices. He compares current PBM dealings to a car salesman taking a customer’s offer to the manager behind closed doors, not letting the customer know what discounts or rebates the auto manufacturer is giving to the dealership.
The bill would have required PBMs to disclose directly to purchasers information on drug discounts, typically health plans and labor trusts. However, state administration has reportedly asked the bill’s authors to consider changing that requirement, making PBMs disclose the information to the Department of Managed Health Care instead, which would then report to purchasers.
“We continue to believe that the best way to achieve transparency is for PBMs to disclose that information to the purchasers,” said Wood, but he remains open to negotiation to get the bill passed next year.
