The California Legislature adjourned their 2020 session with the passage of two key health bills. Gov. Gavin Newsom has until September 30 to sign or veto these measures:
Coverage of Substance Use Disorders
Health insurers would be required to provide expanded coverage for mental health and substance abuse disorders. The bill (SB 855) would expand the list of mental health conditions considered medically necessary under California’s mental health parity law. Currently, the law does not include substance use disorders. Health plans would base coverage decisions on criteria developed by nonprofit clinical specialty associations, rather than making their own determinations.
A State-Run Generic Drug Company
California's legislature approved a measure that directs the state's top health agency to partner with drug companies to make or distribute generic drugs. The bill, SB-852, also opens the door for California to make its own generic drugs in the future. Anthony Wright, Executive Director of Health Access California said, “By creating a generic drug label for the state, SB 852 will ensure that the state has access to more affordable medications and expand access to life-saving generic prescription drugs to more Californians.