CA SB939

Prohibits pharmacy benefit managers from discriminating against covered entities or specified pharmacies in dispensing federal 340B discount drugs or preventing them from retaining discounted pricing benefits.

Prevents pharmacy benefit managers from imposing unfavorable payment terms, network restrictions, audit requirements, or contract terminations based on an entity's covered entity or specified pharmacy status.

Prohibits drug manufacturers subject to federal pricing requirements from imposing preconditions, limitations, delays, or barriers to purchasing covered drugs beyond those required by federal law, including restrictions on dispensing locations and charging above federal ceiling prices.

Defines covered entities, covered drugs, drug manufacturers, pharmacy benefit managers, and specified pharmacies by reference to federal 340B program definitions and regulations under Title 42 of the United States Code.

Exempts the Medi-Cal and Medicare programs from these requirements while applying restrictions to entities contracting with these programs that meet the definition of payer with rate-setting discretion.