CA AB874

Requires health care service plans, health insurance policies, and pharmacy benefit managers to apply manufacturer discount programs, product vouchers, and other out-of-pocket reductions toward enrollees' deductibles, copayments, coinsurance, and annual out-of-pocket maximums.

Exempts Health Savings Account-qualified High Deductible Health Plans from applying discounts to the minimum deductible required under federal tax law, except for preventive care services.

Excludes self-insured employer plans governed by the Employee Retirement Income Security Act (ERISA) from these requirements.

Makes willful violations by health care service plans a crime enforceable under existing enforcement provisions.

Applies to health care service plans and insurance policies issued, amended, delivered, or renewed on or after January 1, 2024.