Reject Big Pharma’s Money Grab.

California lawmakers are considering legislation that could drive up health insurance premiums by billions of dollars each year for millions of residents who rely on employer or union coverage. The proposal would also cost the state hundreds of millions in excess drug spending in its first year alone—and billions more over the next decade.

Despite its high price tag, the bill would do nothing to lower prescription drug prices or reduce out-of-pocket costs for patients. Instead, it would undermine proven, market-based strategies like pay-for-performance that help control costs and deliver savings for California families.

Dear [Lawmaker],

Thank you for your service to the people of California. I write to encourage you to oppose Senate Bill 41, which would impact millions of California patients, employers and union members currently insured through the commercial market, all while boosting profits for big pharmaceutical companies.
California families, many of whom rely on an employer or union for their coverage, deserve access to affordable, high-quality health care. This bill includes provisions that would ban pay-for-performance incentives in the private health care marketplace that are essential for employers and unions to secure significant savings on prescription drugs, directly leading to higher premium costs for patients.
Governor Newsom has taken a thoughtful approach to addressing prescription affordability for California families in his recently signed budget. However, SB 41 is far from thoughtful, as it hands a multi-billion-dollar payout to Big Pharma, paid for by employers, unions and patients across our state. 
If implemented, SB 41 would cause hundreds of millions in excess drug spending in the first year alone and billions more in total drug spending over the next decade. Most concerningly, they would hike premiums by billions of dollars annually for California patients who rely on unions or employers for their health insurance.
This would place an unsustainable burden on people in our communities already dealing with several years of elevated costs on essential everyday goods. It would worsen California’s climate for growth and opportunity, making it more challenging for employers and unions to offer affordable, high-quality health care coverage.
Employers and unions should be free to pay for the services of a PBM they’ve voluntarily elected to hire based on what they know is best for their employers and members, including by incentivizing the PBM to secure greater savings negotiating on their behalf, which helps lower prescription drug costs for California families.
Senate Bill 41 does nothing to address the cause of high prescription drug costs. Instead, it would undermine savings, competition and flexibility in the private market, exacerbating challenges of affordability and rewarding Big Pharma for egregious price-gouging and anti-competitive practices. 
California patients and families cannot afford astronomical increases to their health care costs just to line Big Pharma’s pockets. That’s why I urge you to oppose Senate Bill 41.
Thank you for your consideration and for your commitment to the people you represent.

Sincerely,
______

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