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AB 1773

Pharmacy benefit managers.

2025-2026 Regular Session Introduced by Blanca Rubio

The bill requires a public online registry listing key license details for every licensed PBM in California.

Read second time. Ordered to Consent Calendar.
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Bill Summary · AB 1773

Summary of AB 1773 (2025-2026) — Pharmacy Benefit Managers (California)

1) Purpose and intent

  • AB 1773, introduced by Assembly Member Blanca Rubio, seeks to enhance transparency and oversight of pharmacy benefit managers (PBMs) operating in California.
  • The bill adds a new reporting requirement for PBMs and makes a related technical adjustment to Medi-Cal policy for prerelease services for inmates.
  • Overall aim: provide public, accessible information about PBMs and clarify Medi-Cal prerelease service eligibility for inmates.

2) Key provisions and changes

A. Public disclosure website for licensed PBMs

  • New Code: Health and Safety Code Section 1385.007 (added).
  • Requirement: The California Department of Public Health? (specifically the Department of Managed Health Care) is directed to maintain a public internet website displaying for every licensed PBM:
    • Legal name
    • License number and license status
    • Initial licensure date
    • License expiration date
  • Implementation note: The department must use existing resources to implement this requirement. If additional funds are needed, implementation becomes operative only upon appropriation in the annual Budget Act or another funding measure.

B. Medi-Cal: prerelease services for inmates (CalAIM)

  • Technical, nonsubstantive change to Welfare and Institutions Code Section 14184.800 to align with CalAIM terms and conditions for targeted Medi-Cal services for qualifying inmates, applicable no sooner than January 1, 2023.
  • Provisions maintained:
    • Eligible qualifying inmates may receive targeted Medi-Cal services for 90 days (or the CalAIM-approved number of days) before release if otherwise eligible.
    • Services limited to those approved in CalAIM Terms and Conditions.
    • If federal approval is obtained, the Department must arrange for an independent third-party evaluation of the program and post the report publicly after submission to CMS.

3) Who/what is affected

  • Pharmacy benefit managers (PBMs) operating in California and any PBMs licensed under applicable state law. The bill expands public visibility of PBM information.
  • California Department with PBM licensure authority (implicitly the department responsible for PBM licensure under the Knox-Keene framework and related statutes).
  • Inmates of public institutions who are eligible for targeted Medi-Cal services prior to release, subject to CalAIM terms and Conditions.
  • The California Department of Health Care Services (for Medi-Cal CalAIM implementations) and federal CMS, in the context of reporting and potential federal approval for prerelease services data collection and evaluation.

4) Procedural and timeline aspects

  • PBM licensing:
    • The bill requires public PBM information to be posted online once implemented, using existing department resources. Funding must be appropriated to enable any additional resources.
  • Implementation status:
    • The bill text indicates standard legislative timelines for a 2025-2026 session, with referral history showing committee processes in early-to-mid 2026.
    • The bill was amended and moved through committee hearings in 2026; the action history notes “From committee: Do pass and re-refer to Appro. with recommendation to Consent Calendar” and prior referrals to Health and Appropriations.
  • Medi-Cal prerelease services:
    • The prerelease services policy has been in effect since at least January 1, 2023, under CalAIM terms and Conditions; AB 1773 clarifies that the policy remains in place and adds an explicit requirement for an independent third-party evaluation if federal approval is obtained, with public posting of results.

5) Fiscal considerations

  • No explicit appropriation is attached to the PBM public website provision; the bill states implementation is contingent on funding appropriations.
  • No new state appropriation is identified in the bill text itself; however, the creation and maintenance of a public PBM registry could entail ongoing costs for database hosting, maintenance, and staff time.

6) Summary in plain terms

  • AB 1773 would require California to publish a public registry listing key facts about every licensed PBM (name, license number/status, dates of licensure and expiration) on a state website, using existing department resources; funding would be needed for any additional resources.
  • It also makes a minor, non-substantive adjustment to Medi-Cal prerelease services for inmates, reinforcing CalAIM-approved services before release and mandating an independent evaluation and public reporting if federal approval is obtained.

If you’d like, I can tailor this into a one-page briefing for stakeholders or convert it into a quick quiz for quick-consumption readers.

Compiled from official sources — confirm details with the bill’s official record.

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