CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1460Introduced by Assembly Member Rogers(Coauthor: Assembly Member Ransom)February 21, 2025 An act to add Section 127472 to the Health and Safety Code, relating to prescription drug pricing. LEGISLATIVE COUNSEL'S DIGESTAB 1460, as introduced, Rogers. Prescription drug pricing.Existing federal law requires the United States Secretary of Health and Human Services to enter into an agreement with each manufacturer of covered outpatient drugs to ensure the amount a covered entity is required to pay for those drugs does not exceed the average manufacturer price of the drug under the federal Medicaid program. Existing state law requires a covered entity to dispense only drugs subject to these federal pricing requirements to Medi-Cal beneficiaries. Existing law prohibits a pharmacy benefit manager from discriminating against a covered entity or its pharmacy in connection with dispensing a drug subject to federal pricing requirements or preventing a covered entity from retaining the benefit of discounted pricing for those drugs. This bill would prohibit a prescription drug manufacturer from engaging in discriminatory practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a covered entitys purchase or delivery of a drug subject to federal pricing requirements if the covered entity utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the covered entity.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 127472 is added to the Health and Safety Code, to read:127472. A prescription drug manufacturer shall not engage in discriminatory practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a covered entitys purchase or delivery of a drug eligible for discounts under the federal pricing requirements set forth in Section 256b of Title 42 of the United States Code, if the covered entity utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the covered entity.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 1460Introduced by Assembly Member Rogers(Coauthor: Assembly Member Ransom)February 21, 2025 An act to add Section 127472 to the Health and Safety Code, relating to prescription drug pricing. LEGISLATIVE COUNSEL'S DIGESTAB 1460, as introduced, Rogers. Prescription drug pricing.Existing federal law requires the United States Secretary of Health and Human Services to enter into an agreement with each manufacturer of covered outpatient drugs to ensure the amount a covered entity is required to pay for those drugs does not exceed the average manufacturer price of the drug under the federal Medicaid program. Existing state law requires a covered entity to dispense only drugs subject to these federal pricing requirements to Medi-Cal beneficiaries. Existing law prohibits a pharmacy benefit manager from discriminating against a covered entity or its pharmacy in connection with dispensing a drug subject to federal pricing requirements or preventing a covered entity from retaining the benefit of discounted pricing for those drugs. This bill would prohibit a prescription drug manufacturer from engaging in discriminatory practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a covered entitys purchase or delivery of a drug subject to federal pricing requirements if the covered entity utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the covered entity.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 1460
Introduced by Assembly Member Rogers(Coauthor: Assembly Member Ransom)February 21, 2025
Introduced by Assembly Member Rogers(Coauthor: Assembly Member Ransom)
February 21, 2025
An act to add Section 127472 to the Health and Safety Code, relating to prescription drug pricing.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1460, as introduced, Rogers. Prescription drug pricing.
Existing federal law requires the United States Secretary of Health and Human Services to enter into an agreement with each manufacturer of covered outpatient drugs to ensure the amount a covered entity is required to pay for those drugs does not exceed the average manufacturer price of the drug under the federal Medicaid program. Existing state law requires a covered entity to dispense only drugs subject to these federal pricing requirements to Medi-Cal beneficiaries. Existing law prohibits a pharmacy benefit manager from discriminating against a covered entity or its pharmacy in connection with dispensing a drug subject to federal pricing requirements or preventing a covered entity from retaining the benefit of discounted pricing for those drugs. This bill would prohibit a prescription drug manufacturer from engaging in discriminatory practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a covered entitys purchase or delivery of a drug subject to federal pricing requirements if the covered entity utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the covered entity.
Existing federal law requires the United States Secretary of Health and Human Services to enter into an agreement with each manufacturer of covered outpatient drugs to ensure the amount a covered entity is required to pay for those drugs does not exceed the average manufacturer price of the drug under the federal Medicaid program. Existing state law requires a covered entity to dispense only drugs subject to these federal pricing requirements to Medi-Cal beneficiaries. Existing law prohibits a pharmacy benefit manager from discriminating against a covered entity or its pharmacy in connection with dispensing a drug subject to federal pricing requirements or preventing a covered entity from retaining the benefit of discounted pricing for those drugs.
This bill would prohibit a prescription drug manufacturer from engaging in discriminatory practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a covered entitys purchase or delivery of a drug subject to federal pricing requirements if the covered entity utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the covered entity.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 127472 is added to the Health and Safety Code, to read:127472. A prescription drug manufacturer shall not engage in discriminatory practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a covered entitys purchase or delivery of a drug eligible for discounts under the federal pricing requirements set forth in Section 256b of Title 42 of the United States Code, if the covered entity utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the covered entity.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 127472 is added to the Health and Safety Code, to read:127472. A prescription drug manufacturer shall not engage in discriminatory practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a covered entitys purchase or delivery of a drug eligible for discounts under the federal pricing requirements set forth in Section 256b of Title 42 of the United States Code, if the covered entity utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the covered entity.
SECTION 1. Section 127472 is added to the Health and Safety Code, to read:
### SECTION 1.
127472. A prescription drug manufacturer shall not engage in discriminatory practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a covered entitys purchase or delivery of a drug eligible for discounts under the federal pricing requirements set forth in Section 256b of Title 42 of the United States Code, if the covered entity utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the covered entity.
127472. A prescription drug manufacturer shall not engage in discriminatory practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a covered entitys purchase or delivery of a drug eligible for discounts under the federal pricing requirements set forth in Section 256b of Title 42 of the United States Code, if the covered entity utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the covered entity.
127472. A prescription drug manufacturer shall not engage in discriminatory practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a covered entitys purchase or delivery of a drug eligible for discounts under the federal pricing requirements set forth in Section 256b of Title 42 of the United States Code, if the covered entity utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the covered entity.
127472. A prescription drug manufacturer shall not engage in discriminatory practices that would impose additional conditions, prohibit, restrict, deny, or interfere with a covered entitys purchase or delivery of a drug eligible for discounts under the federal pricing requirements set forth in Section 256b of Title 42 of the United States Code, if the covered entity utilizes a specified pharmacy, including a contract pharmacy, that dispenses the drug to an eligible patient of the covered entity.