On October 7, 2023, California Governor Gavin Newsom signed Senate Bill 786 (SB 786) into law, prohibiting pharmacy benefit managers (PBMs) from discriminating against covered entities participating in the 340B Program.
Effective January 1, 2024, PBMs cannot impose requirements, conditions or exclusions that discriminate or prevent a 340B covered entity from obtaining and retaining the benefit of the discounted drugs available through the 340B Program. Under the new law, the prohibited discriminatory practices against 340B covered entities, pharmacies owned by 340B covered entities and pharmacies that contract with 340B covered entities to dispense 340B drugs include:
