CA SB873

Requires health care service plans and health insurers to reduce enrollees' and insureds' defined cost-sharing for prescription drugs by at least 90% of all rebates received, effective no later than January 1, 2025.

Mandates plans and insurers provide enrollees and insureds a good faith estimate of cost-sharing reductions at the point of sale, plus end-of-calendar-year reconciliation for any additional reductions not passed through initially.

Requires plans and insurers to calculate and communicate enrollees' and insureds' cost-sharing amounts to dispensing pharmacies based on rebate-reduced prices.

Expands reporting requirements to include data on point-of-sale rebates and administrative fees paid to pharmacy benefit managers, with the Department of Managed Health Care and Insurance Commissioner submitting annual reports to the Legislature on the provision's impact on drug prices and premium rates.

Makes the rebate pass-through provisions inoperative on January 1, 2027, with full repeal by January 1, 2028; sunset provisions do not apply to underlying reporting requirements.