California 2025-2026 Regular Session

California Senate Bill SB40

Introduced
12/3/24  
Refer
1/29/25  
Refer
3/17/25  
Report Pass
4/3/25  

Caption

Health care coverage: insulin.

Impact

The implementation of SB 40 is expected to significantly decrease the financial burden faced by individuals with diabetes, particularly those dependent on insulin. With a rising number of individuals diagnosed with diabetes in California, which includes over 4 million adults, the prohibitive costs of insulin have led to reports of patients underusing their medication. By capping out-of-pocket expenses for insulin and eliminating step therapy, this legislation aims to increase adherence to prescribed treatments and, ultimately, improve health outcomes for patients. Moreover, it reflects a legislative commitment to addressing the broader public health implications of diabetes.

Summary

Senate Bill 40 aims to amend the existing health care coverage regulations concerning insulin, specifically addressing the high costs associated with diabetes treatment. The bill prohibits health care service plans and insurers from imposing any form of cost sharing, including co-payments and deductibles, that exceeds $35 for a 30-day supply of insulin. This provision will come into effect on January 1, 2026, applying to both individual and small group market policies by January 1, 2027. Additionally, the bill disallows the use of step therapy protocols as a condition for approving insulin coverage, thus simplifying access for patients reliant on this life-saving medication.

Sentiment

The sentiment surrounding SB 40 has been largely supportive among patient advocacy groups and healthcare providers who emphasize the critical nature of affordable access to insulin. Many see the bill as a necessary measure to combat the financial barriers that prevent effective diabetes management. However, there are some concerns raised by insurance providers regarding potential increased costs to the industry and the implications on overall healthcare premiums. Nevertheless, proponents argue that the long-term health benefits and potential savings from reduced emergency care and hospitalizations outweigh these concerns.

Contention

While supporters view SB 40 as a crucial step toward ensuring equitable health care for Californians with diabetes, opponents voice apprehension regarding the financial impact on insurers and the feasibility of enforcing these new regulations. Additionally, the lack of reimbursement requirements for local agencies under this bill may leave some stakeholders questioning the fiscal responsibility of the implementation. The debates surrounding this bill have sparked discussions about the balance between ensuring patient access to essential medications and maintaining sustainable healthcare funding.

Companion Bills

No companion bills found.

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