Numerous efforts have been made at the federal level to crack down on the opaque business practices of pharmacy benefit managers, from a lawsuit by the Federal Trade Commission to bills in Congress. But no definitive action has been taken yet.

In the absence of federal progress, states are stepping in to fill the gap. Just recently, California Governor Gavin Newsom signed a law (SB 41) that will regulate PBMs. It has several provisions, including banning spread pricing. This is when a PBM charges a health plan more for a drug than it pays the pharmacy and keeps the difference as profit.

“I am pleased to sign SB 41, a bill that will lower health care costs for all Californians. This bill … represents the most aggressive effort in the country to lower prescription drug costs. Califor

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