California 2025-2026 Regular Session

California Assembly Bill AB577

Introduced
2/12/25  
Refer
2/24/25  
Refer
2/24/25  
Report Pass
4/21/25  
Refer
4/22/25  
Report Pass
4/30/25  
Refer
5/5/25  
Refer
5/14/25  

Caption

An act to add Section 1367.48 to the Health and Safety Code, and to add Section 10123.1934 to the Insurance Code, relating to health care coverage.

Impact

AB 577 mandates significant changes in the way health insurers and pharmacy benefit managers operate, particularly concerning the administration of injected or infused medications. By requiring consent and a good faith estimate of costs to be provided before treatment, the bill enhances transparency and ensures a better understanding of out-of-pocket expenses for patients. These provisions are expected to reduce the financial burden on enrollees who might otherwise face unexpected costs related to their healthcare services. However, this also creates a new state-mandated local program, and thus, while no reimbursements are legally required for local agencies and school districts, they may face administrative and operational impacts as they adapt to these changes.

Summary

Assembly Bill 577, introduced by Assembly Member Wilson, targets health care practices related to antisteering in California. This proposed legislation will modify the Health and Safety Code and Insurance Code to protect patients from certain coercive practices by health insurers and pharmacy benefit managers. Specifically, starting January 1, 2026, the bill prohibits these entities from imposing requirements that compel enrollees to self-administer injected medications when it is clinically appropriate for a healthcare provider to administer them. Furthermore, it disallows the discrimination against in-network physicians regarding the dispensing of oral medications, ensuring equitable treatment across healthcare services.

Sentiment

Discussions surrounding AB 577 indicate a favorable sentiment towards its intentions of protecting patients and enhancing their rights to informed consent and fair treatment. Lawmakers and healthcare advocates generally support the bill, recognizing it as a vital step towards patient empowerment. However, concerns have been raised regarding the potential implications for healthcare service providers who may have to adjust their practices and billing methods in light of these new regulations. Critics might voice apprehension about the feasibility of implementation and the accompanying administrative burdens on local healthcare providers.

Contention

One notable point of contention in the discussions of AB 577 revolves around the implications for pharmaceutical practices and the relationship between healthcare providers and insurers. Some stakeholders are concerned that the prohibitions on steering practices may hinder the ability of insurers to manage costs effectively or create efficiencies within the healthcare delivery system. Additionally, there are worries that the increased requirements for consent and cost disclosures might complicate patient interactions within clinical settings, potentially leading to unintended delays in care.

Companion Bills

No companion bills found.

Previously Filed As

CA HB1114

Health insurance benefits coverage of insulin drugs and supplies.

CA HB1114

AN ACT to create and enact a new section to chapter 26.1-36 of the North Dakota Century Code, relating to individual and group health insurance coverage of insulin drugs and supplies; and to amend and reenact section 54-52.1-04.18 of the North Dakota Century Code, relating to health insurance benefits coverage of insulin drugs and supplies.

CA SB363

Health care coverage: independent medical review.

CA AB298

Health care coverage cost sharing.

CA AB575

Obesity Prevention Treatment Parity Act.

CA AB574

Prior authorization: physical therapy.

CA SB386

Dental providers: fee-based payments.

CA SB535

An act to add Section 1374.

CA SB950

An act to add Section 1373.15 to the Health and Safety Code, and to add Section 10123.175 to the Insurance Code, relating to health care coverage.

CA SB964

An act to add Section 1367.225 to the Health and Safety Code, and to add Section 10123.1934 to the Insurance Code, relating to health care coverage.

Similar Bills

AZ HB2291

Opioids; containers; labeling; requirements; repeal

RI H8318

Prescriptions for testosterone not allowed to be transmitted or reported within the prescription drug monitoring database and removes from the records all existing information concerning prior testosterone prescriptions.

RI S2889

Prescriptions for testosterone not allowed to be transmitted or reported within the prescription drug monitoring database and removes from the records all existing information concerning prior testosterone prescriptions.

HI HB2225

Relating To Health.

HI SB2751

Relating To Workers' Compensation.

RI H5866

Increases the maximum fill for non-opioid, non-narcotic controlled substances found in schedule II, so that a sixty-day (60) supply may be dispensed at any one time.

RI S0795

Increases the maximum fill for non-opioid, non-narcotic controlled substances found in schedule II, so that a ninety-day (90) supply may be dispensed at any one time.

TX SB493

Relating to protection of certain disclosures and communications by pharmacists and pharmacies regarding prescription drug benefits.