CA SB1454

Prohibits pharmacy benefit managers from requiring pharmacists or pharmacies to reimburse them for the cost of properly adjudicated drugs, except in cases of fraud or malfeasance.

Prohibits contracts between pharmacy benefit managers and pharmacists or pharmacies entered into on or after January 1, 2017 from including provisions that conflict with the reimbursement prohibition.

Requires pharmacy benefit managers to refund any improper reimbursements received from pharmacists or pharmacies between January 1, 2012 and January 1, 2017.

Defines key terms including "properly adjudicated" (pharmacist explicitly authorized to dispense and entitled to payment at that time), "pharmacy benefit manager," and "pharmacy benefits management."