CA AB2000

Prohibits health care service plans and health insurers from making mid-year changes to drug formularies, including removing drugs, moving drugs to higher cost tiers, or imposing new utilization management requirements

Allows limited exceptions for formulary changes: adding newly approved drugs, removing drugs due to FDA safety concerns, moving drugs to lower cost tiers, or removing prior authorization requirements

Requires plans, insurers, or their pharmacy benefit managers to report any formulary changes to the appropriate department within 30 days of the change

Authorizes administrative penalties ranging from $500 to $5,000 per 1,000 enrollees for violations, with penalty amounts adjusted every five years starting January 1, 2030 based on premium rate changes

Grants the Department of Managed Health Care and Department of Insurance authority to conduct audits related to these provisions without requiring an enrollee complaint