Governors Briefs: California to See New Homes for Veterans and State Reduces Cost of Prescription Drugs

Gov. Newsom Signs SB 41 to Lower the Cost of Prescription Drugs

SACRAMENTO — Gov. Gavin Newsom Oct. 11 announced that he signed SB 41 by Sen. Scott Weiner (D-San Francisco), regulating pharmacy benefit managers or PBMs to prevent inflated prescription drug prices. 

This bill enacts a sweeping reform of the allowable business practices for PBMs, which will be licensed by the Department of Managed Health Care or DMHC in accordance with trailer bill legislation enacted this year. The bill reforms the revenue generating abilities of PBMs, including prohibiting the practice of spread pricing, requiring manufacturer rebates to be passed through to health plans, and allowing only administrative fee charges to be assessed to health plan and health insurer clients. 

Details: For full text of SB 41, visit: http://leginfo.legislature.ca.gov. 

Hundreds of New Homes for Veterans are Coming to California through Prop 1 Funding

California continues to honor its 1.5 million veterans — creating stronger supports and housing dedicated to serving veterans. Gov. Gavin Newsom Oct. 16 announced new awards to fund the development of 707 permanent supportive homes with services for veterans and other Californians who are experiencing or at risk of homelessness and living with behavioral health challenges, along with 13 manager units. 

Finding affordable housing can be extremely difficult for veterans, especially if they have experienced post-traumatic stress disorder, have suffered from a traumatic brain injury, or live with mental-health issues. Remaining stably housed can be even more difficult, especially without mental health support.

Prop 1, which was championed by Gov. Newsom, approved by voters in 2024, is transforming California’s mental health systems with a $6.4 billion Behavioral Health Bond for housing, services, and treatment for veterans and people experiencing homelessness.