Washington, D.C., October 15, 2025– Dillon Clair, Director of State Advocacy for The ERISA Industry Committee (ERIC), issued the statement below following Governor Newsom’s signing of Senate Bill 41 to reform the practices of Pharmacy Benefit Managers (PBMs) across California. During the legislative process, ERIC worked closely with lawmakers to ensure the bill would not interfere with the design and administration of self-funded health benefit plans governed by the federal Employee Retirement Income Security Act of 1974 (“ERISA”).
“ERIC is pleased that California’s PBM reform law addressed several key concerns we raised on behalf of large employers and, importantly, does not attempt to control self-funded benefit plan design and administration. While we appreciate that California legislators recognized the importance of ERISA preemption, we also understand there is still a long advocacy road ahead to ensure that SB 41 is not misinterpreted and applied broadly to ERISA self-funded employer plans. Along this line, ERIC will be monitoring the upcoming regulatory development process to guarantee that implementation of the law is not unduly burdensome for employers and does not undermine ERISA preemption.”
In addition to its work in the states, ERIC continues to call on Congress to move with greater urgency to enact strong PBM transparency and accountability reforms at the federal level that would provide relief for employers and workers nationwide, including:
- Providing for comprehensive PBM transparency.
- Banning so-called “spread pricing.”
- Requiring 100% pass-through of rebates and payments from drug manufacturers.
- Applying fiduciary standards to PBMs, in the same way such standards apply to employers