California · Through 2026-09-13

HSC § 1385.0026

(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.

Where this section sits in the code

Health and Safety Code - HSC
DIVISION 2. LICENSING PROVISIONS [1200. - 1796.88.]
CHAPTER 2.2. Health Care Service Plans [1340. - 1399.874.]
ARTICLE 6.1. Pharmacy Benefit Managers [1385.001. - 1385.009.]

(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.

Collected 2026-09-14T05:56:33Z. Source file · JSON

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