AB 554

  • California Assembly Bill
  • 2025-2026 Regular Session
  • Introduced in Assembly
  • Passed Assembly Jun 03, 2025
  • Passed Senate Sep 09, 2025
  • Governor

Health care coverage: antiretroviral drugs, drug devices, and drug products.

Abstract

Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law generally prohibits a health care service plan, excluding a Medi-Cal managed care plan, or health insurer from subjecting antiretroviral drugs that are medically necessary for the prevention of HIV/AIDS, including preexposure prophylaxis or postexposure prophylaxis, to prior authorization or step therapy. Under existing law, a health care service plan or health insurer is not required to cover all the therapeutically equivalent versions of those drugs without prior authorization or step therapy if at least one is covered without prior authorization or step therapy. This bill, the Protecting Rights, Expanding Prevention, and Advancing Reimbursement for Equity (PrEPARE) Act of 2025, would instead prohibit a health care service plan, excluding a Medi-Cal managed care plan, or health insurer from subjecting antiretroviral drugs, drug devices, or drug products that are medically necessary for the prevention of HIV/AIDS, to prior authorization or step therapy, but would authorize prior authorization or step therapy if at least one therapeutically equivalent version is covered without prior authorization or step therapy. The bill would specify that, for therapeutically equivalent coverage purposes, a long-acting drug, drug device, or drug product is not therapeutically equivalent to a long-acting drug, drug device, or drug product with a different duration. The bill would require a plan or insurer that covers non-self-administered antiretroviral drugs, drug devices, or drug products that are approved by the United States Food and Drug Administration (FDA) for the prevention of HIV/AIDS as a medical benefit to also include those non-self-administered antiretroviral drugs, drug devices, or drug products as an outpatient prescription drug benefit. This bill would require a nongrandfathered health care service plan contract or health insurance policy to provide coverage for antiretroviral drugs, drug devices, or drug products that are approved by the FDA for HIV preexposure prophylaxis, and would prohibit a nongrandfathered health care service plan contract or health insurance policy from imposing any cost sharing for those drugs, drug devices, or drug products. The bill would prohibit a plan or insurer from imposing cost sharing on a nonformulary antiretroviral drug, drug device, or drug product that is approved by the FDA for HIV preexposure prophylaxis and is covered pursuant to an exception request if the nonformulary antiretroviral drug, drug device, or drug product is therapeutically equivalent to a formulary antiretroviral drug, drug device, or drug product that is approved by the FDA for HIV preexposure prophylaxis and is covered by the plan or insurer without cost sharing. The bill would exempt Medi-Cal managed care plans from these provisions. Because a willful violation of these provisions by a health care service plan would be a crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Bill Sponsors (6)

Votes


Actions


Oct 13, 2025

Assembly

Consideration of Governor's veto pending.

Assembly

Vetoed by Governor.

Sep 22, 2025

California State Legislature

Enrolled and presented to the Governor at 3 p.m.

Sep 10, 2025

Assembly

Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 69. Noes 1. Page 3221.).

Sep 09, 2025

Senate

Read third time. Passed. Ordered to the Assembly. (Ayes 31. Noes 0. Page 2664.).

Assembly

In Assembly. Concurrence in Senate amendments pending.

Sep 08, 2025

Senate

Read second time. Ordered to third reading.

Sep 04, 2025

Senate

Read third time and amended. Ordered to second reading.

Aug 29, 2025

Senate

From committee: Do pass. (Ayes 6. Noes 0.) (August 29).

Senate

Read second time. Ordered to third reading.

Aug 18, 2025

Senate

In committee: Referred to suspense file.

  • Referral-Committee
suspense file.

Jul 17, 2025

Senate

Read second time and amended. Re-referred to Com. on APPR.

  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on APPR.

Senate

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (July 16).

Jun 24, 2025

Senate

From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HEALTH.

  • Amendment-Introduction
  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on HEALTH.

Jun 18, 2025

Senate

Referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

Jun 04, 2025

Senate

In Senate. Read first time. To Com. on RLS. for assignment.

Jun 03, 2025

Assembly

Read third time. Passed. Ordered to the Senate. (Ayes 68. Noes 1. Page 2007.)

May 27, 2025

Assembly

Read second time. Ordered to third reading.

May 23, 2025

Assembly

Assembly Rule 63 suspended. (Ayes 51. Noes 16. Page 1644.)

Assembly

Read second time and amended. Ordered returned to second reading.

Assembly

From committee: Amend, and do pass as amended. (Ayes 11. Noes 0.) (May 23).

May 14, 2025

Assembly

In committee: Set, first hearing. Referred to suspense file.

  • Referral-Committee
suspense file.

Apr 30, 2025

Assembly

From committee: Do pass and re-refer to Com. on APPR. (Ayes 14. Noes 0.) (April 29). Re-referred to Com. on APPR.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on APPR.

Mar 04, 2025

Assembly

Re-referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

Mar 03, 2025

Assembly

From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.

Feb 24, 2025

Assembly

Referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

Feb 12, 2025

Assembly

From printer. May be heard in committee March 14.

Feb 11, 2025

Assembly

Read first time. To print.

Bill Text

Bill Text Versions Format
AB554 HTML
02/11/25 - Introduced PDF
03/03/25 - Amended Assembly PDF
05/23/25 - Amended Assembly PDF
06/24/25 - Amended Senate PDF
07/17/25 - Amended Senate PDF
09/04/25 - Amended Senate PDF
09/12/25 - Enrolled PDF

Related Documents

Document Format
04/26/25- Assembly Health PDF
05/07/25- Assembly Health PDF
05/12/25- Assembly Appropriations PDF
05/28/25- ASSEMBLY FLOOR ANALYSIS PDF
07/14/25- Senate Health PDF
08/15/25- Senate Appropriations PDF
08/29/25- Sen. Floor Analyses PDF
09/08/25- Sen. Floor Analyses PDF
09/10/25- ASSEMBLY FLOOR ANALYSIS PDF
10/23/25- ASSEMBLY FLOOR ANALYSIS PDF

Sources

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