Gov. Gavin Newsom rejected bills that would have regulated prescription drug middlemen known as pharmacy benefit managers and hedge funds buying stakes in California health care companies. Photo by Anne Wernikoff for CalMattersGov. Newsom in vetoing regulations for pharmacy benefit managers and hedge funds in health said his administration is working to protect consumers in different ways.
He also rejected a hotly contested measure by Democratic Assemblyman Jim Wood of Ukiah that would have given the state more power to block the sale ofthrough other programs, and that an existing office has a mandate to review the market effects of health care consolidation. Pharmacy benefit managers, also known as PBMs, serve as intermediaries between insurance companies and drug manufacturers. They process claims, negotiate the price of drugs using a. They also control the list of drugs that health insurance plans cover, also known as a formulary. They are regulated in many other states including Florida and Texas..
But those investments have a downside if shareholders cut services and saddle health organizations with debt, consumer advocates say. Nationally, mounting evidence suggestsThe rejected bill would have granted the attorney general the authority to review transactions between these investors and health businesses like surgery centers, nursing homes, and large physician practices.
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