{"code":"HSC","codeName":"Health and Safety Code","section":"1385.0026","citation":"Health & Saf. Code, § 1385.0026","status":"in-force","lawOn":"2026-09-28","headings":[{"name":"DIVISION 2. LICENSING PROVISIONS [1200. - 1796.88.]","url":"https://blackletter.si/health-and-safety-code/division-2"},{"name":"CHAPTER 2.2. Health Care Service Plans [1340. - 1399.874.]","url":"https://blackletter.si/health-and-safety-code/division-2/chapter-2.2"},{"name":"ARTICLE 6.1. Pharmacy Benefit Managers [1385.001. - 1385.009.]","url":"https://blackletter.si/health-and-safety-code/division-2/chapter-2.2/article-6.1"}],"history":"Added by Stats. 2025, Ch. 605, Sec. 8.   (SB 41)   Effective January 1, 2026.","effective":"2026-01-01","html":"<p>(a) A pharmacy benefit manager shall not impose any requirements, conditions, or exclusions that discriminate against a nonaffiliated pharmacy in connection with dispensing drugs.</p><p>(b) Discrimination prohibited pursuant to subdivision (a) includes all of the following:</p><p>(1) Terms or conditions applied to nonaffiliated pharmacies based on their status as a nonaffiliated pharmacy.</p><p>(2) Refusing to contract with or terminating a contract with a nonaffiliated pharmacy on the basis that the pharmacy is a nonaffiliated pharmacy or for reasons other than those that apply equally to affiliated pharmacies.</p><p>(3) Retaliation against a nonaffiliated pharmacy based on its exercise of any right or remedy under this article.</p><p>(4) Engaging in an unlawful action against a covered entity, including a violation of Section <a href=\"/hsc/127471\">127471</a>.</p><p>(5) Reimbursing a nonaffiliated pharmacy less for a pharmacist service than the pharmacy benefit manager would reimburse an affiliated pharmacy for the same pharmacist service.</p><p>(c) This article does not preclude a pharmacy benefit manager or a purchaser of pharmacy benefit manager services from establishing a network of contracting pharmacies.</p>","text":"(a) A pharmacy benefit manager shall not impose any requirements, conditions, or exclusions that discriminate against a nonaffiliated pharmacy in connection with dispensing drugs. (b) Discrimination prohibited pursuant to subdivision (a) includes all of the following: (1) Terms or conditions applied to nonaffiliated pharmacies based on their status as a nonaffiliated pharmacy. (2) Refusing to contract with or terminating a contract with a nonaffiliated pharmacy on the basis that the pharmacy is a nonaffiliated pharmacy or for reasons other than those that apply equally to affiliated pharmacies. (3) Retaliation against a nonaffiliated pharmacy based on its exercise of any right or remedy under this article. (4) Engaging in an unlawful action against a covered entity, including a violation of Section 127471. (5) Reimbursing a nonaffiliated pharmacy less for a pharmacist service than the pharmacy benefit manager would reimburse an affiliated pharmacy for the same pharmacist service. (c) This article does not preclude a pharmacy benefit manager or a purchaser of pharmacy benefit manager services from establishing a network of contracting pharmacies.","otherVersions":[],"url":"https://blackletter.si/health-and-safety-code/pharmacy-benefit-managers-1385-0026","source":"California Legislative Information bulk export (pubinfo)"}