Statement from Insurance Commissioner Ricardo Lara on Senate Bill 966
News: 2024 Press Release
Sacramento, Calif. — Insurance Commissioner Ricardo Lara today issued the following statement, urging Governor Newsom’s signature on SB 966, which reflects a shared commitment to making healthcare more affordable, accessible, and transparent for all Californians:
“Senate Bill 966 is a game-changer for California consumers. For too long, Pharmacy Benefit Managers (PBMs) have operated in the shadows, impacting drug prices and patient access with little oversight. SB 966 will bring much-needed transparency and accountability to this critical part of our healthcare system. I strongly urge Governor Newsom to sign this bill, which will help ensure that consumers—not corporate intermediaries—benefit from the savings PBMs negotiate with drug manufacturers.”
SB 966, authored by Senator Scott Wiener, would establish a licensing and regulatory framework for PBMs under the California Department of Insurance, bringing California in line with 29 other states that already regulate PBMs. The bill requires PBMs to transmit 100% of drug rebates to health plans and insurers, prohibits deceptive communications to patients, and bans the practice of steering patients toward PBM-owned pharmacies over independent in-network pharmacies.
Additionally, SB 966 enhances existing reporting requirements, mandating PBMs to annually report aggregated data on drug costs, rebates, and payments to the Department of Insurance. These measures aim to increase accountability, reduce unfair practices, and ensure that the savings PBMs obtain from drug manufacturers are passed on to consumers.
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Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
