Community News

Governor Newsom signs SB 41 to lower the cost of prescription drugs

 

by: CA Press Office
Published: October 13, 2025

 

SACRAMENTO...Governor Gavin Newsom announced that he signed SB 41 by Senator Scott Weiner (D-San Francisco), regulating pharmacy benefit managers (PBMs) to prevent inflated prescription drug prices. 

This bill enacts a sweeping reform of the allowable business practices for PBMs, which will be licensed by the Department of Managed Health Care (DMHC) in accordance with trailer bill legislation enacted this year. The bill reforms the revenue generating abilities of PBMs, including prohibiting the practice of spread pricing, requiring manufacturer rebates to be passed through to health plans, and allowing only administrative fee charges to be assessed to health plan and health insurer clients.

“With SB 41, California is standing up for consumers against giant mega corporations trying to rip them off on essential medications,” said Senator Scott Wiener. “This new law builds on the licensing framework we established earlier this year to begin holding PBMs accountable for abusive behavior. I’m grateful for Governor Newsom’s leadership in fighting to ensure neighborhood pharmacies get a fair shot and that no family is ever forced to choose between lifesaving medications and putting food on the table.”