Health and Safety Code section 1385.0026

(a)

A pharmacy benefit manager shall not impose any requirements, conditions, or exclusions that discriminate against a nonaffiliated pharmacy in connection with dispensing drugs.

(b)

Discrimination prohibited pursuant to subdivision (a) includes all of the following:

(1)

Terms or conditions applied to nonaffiliated pharmacies based on their status as a nonaffiliated pharmacy.

(2)

Refusing to contract with or terminating a contract with a nonaffiliated pharmacy on the basis that the pharmacy is a nonaffiliated pharmacy or for reasons other than those that apply equally to affiliated pharmacies.

(3)

Retaliation against a nonaffiliated pharmacy based on its exercise of any right or remedy under this article.

(4)

Engaging in an unlawful action against a covered entity, including a violation of Section 127471.

(5)

Reimbursing a nonaffiliated pharmacy less for a pharmacist service than the pharmacy benefit manager would reimburse an affiliated pharmacy for the same pharmacist service.

(c)

This article does not preclude a pharmacy benefit manager or a purchaser of pharmacy benefit manager services from establishing a network of contracting pharmacies.

Source: Section 1385.0026, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=HSC§ionNum=1385.­0026.­ (updated Jan. 1, 2026; accessed Dec. 29, 2025).

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Verified:
Dec. 29, 2025

§ 1385.0026's source at ca​.gov