What SB 1094 does
An act to amend Section 4073.5 of the Business and Professions Code, to amend Section 1367.22 of, and to add Section 1342.77 to, the Health and Safety Code, and to add Sections 10123.190 and 10123.1937 to the Insurance Code, relating to prescription drugs.
(1)The Pharmacy Law governs the practice of pharmacy in this state, including the permissible duties of licensed pharmacists. A knowing violation of the Pharmacy Law is a misdemeanor. Existing law authorizes a pharmacist to select an alternative biological product when filling a prescription order for a prescribed biological product if the alternative biological product is interchangeable, as defined, and the prescriber does not personally indicate in a specified manner that a substitution is not to be made.
This bill would additionally authorize a pharmacist to select an alternative biological product when filling a prescription order for a prescribed biological product if the alternative biological product is biosimilar to, as defined, or interchangeable with, the prescribed reference product, and the prescriber does not personally indicate in a specified manner that a substitution is not to be made. Because a knowing violation of this provision would be a misdemeanor, the bill would create a new crime, thereby imposing a state-mandated local program.
(2)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 prohibits a health care service plan that covers prescription drug benefits from limiting or excluding coverage for a drug that was previously approved for coverage if an enrollee continues to be prescribed that drug and that drug is appropriately prescribed and considered safe and effective for treating the enrollee’s medical condition. Existing law specifies that these provisions do not preclude a prescribing provider from prescribing another drug covered by the plan that is medically appropriate for the enrollee or a generic drug substitution authorized by a pharmacist, as specified.
This bill would prohibit a health insurance policy that covers prescription drug benefits from limiting or excluding coverage for a drug that was previously approved for coverage if an insured continues to be prescribed that drug and the drug is appropriately prescribed, and is considered safe and effective for treating the insured’s medical condition. With respect to both health care service plans and health insurers, the bill would specify that these provisions do not prohibit a prescribing provider from prescribing a drug, biosimilar, or interchangeable biological product substitution authorized by a pharmacist, as described above. The bill would authorize a health care service plan, health insurer, or utilization review organization to require an enrollee or insured to try a biosimilar or interchangeable biological product in place of a prescribed reference product that is subject to continuing coverage by the plan or insurer if specified conditions are met. The bill would require a health care service plan contract or health insurance policy issued, amended, or renewed on or after January 1, 2027, that provides prescription drug benefits and maintains one or more drug formularies that include a reference product to include on the relevant formulary at least one biosimilar or interchangeable biological product licensed for the same reference product if the biosimilar has a lower net cost to the plan or insurer than the reference product. Because a violation of these provisions by a health care service plan would be a crime, the bill would impose a state-mandated local program.
(3)This bill would provide that its provisions are severable.
(4)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.
Summary from the Legislative Counsel's Digest of the enrolled text, August 30, 2026. Read the full text on leginfo.
How it got here
Senator Weber Pierson introduced SB 1094 on February 13, 2026. The text was amended 3 times, 2 in the Assembly and 1 in the Senate, and heard in 6 committee hearings before its final floor votes.
- Senate Floor, May 18, 2026: 38 ayes, 0 noes.
- Assembly Floor, August 26, 2026: 78 ayes, 0 noes.
- Senate Floor, August 27, 2026: 40 ayes, 0 noes.
Committee votes along the way:
- Senate Business, Professions and Economic Development, April 6, 2026: Do pass as amended, but first amend, and re-refer to the Committee on [Health], 10-0.
- Senate Health, April 22, 2026: Do pass, but first be re-referred to the Committee on [Appropriations], 10-0.
- Assembly Business and Professions, June 23, 2026: Do pass and be re-referred to the Committee on [Health], 19-0.
- Assembly Health, June 30, 2026: Do pass as amended and be re-referred to the Committee on [Appropriations], 14-0.
- Assembly Appropriations, August 13, 2026: Do pass., 15-0.
Who supports and opposes SB 1094
The Senate Floor Analyses analysis dated August 26, 2026 lists 22 organizations in support and 19 in opposition. When Senate Business, Professions and Economic Development first listed positions on April 3, 2026, the count was 14 in support and 5 opposed. By the Senate Floor Analyses analysis of August 26, 2026 it was 22 to 19.
In support: America's Health Insurance Plans; America's Physician Groups; American Federation of State, County and Municipal Employees; American GI Forum Education Foundation of Santa Maria, California; Association of California Life & Health Insurance Companies; Blue Shield of California; California Academy of Family Physicians; California African American Chamber of Commerce; and 14 more.
Opposed: Alliance for Patient Access; Alliance for Safe Biologic Medicines; Amgen; Axis Advocates; Biocom California; Biotechnology Innovation Organization; California Chronic Care Coalition; California Health Collaborative; and 11 more.
Read the Senate Floor Analyses analysis.
What happens next
It reached the Governor's desk on September 3, 2026. Bills presented after the Legislature adjourned on August 31 must be signed or vetoed within thirty days.
The Governor can sign the bill, veto it, or let it become law without a signature. Until the decision, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect. If signed, most provisions take effect January 1, and implementation moves to the agencies named in the bill.
What it means for pharmaceutical organizations
Two decisions follow from a bill at this stage. The first is whether to weigh in with the Governor's office before the thirty-day window closes. The second is how to prepare for implementation if it becomes law: which agency writes the rules, when the comment period opens, and which obligations begin January 1.
The pharma group at Capitol Axis handles that for pharmaceutical clients.
Questions about SB 1094
What does SB 1094 do?
This bill would additionally authorize a pharmacist to select an alternative biological product when filling a prescription order for a prescribed biological product if the alternative biological product is biosimilar to, as defined, or interchangeable with, the prescribed reference product, and the prescriber does not personally indicate in a specified manner that a substitution is not to be made. Because a knowing violation of this provision would be a misdemeanor, the bill would create a new crime, thereby imposing a state-mandated local program.
Has SB 1094 passed the California Legislature?
It reached the Governor's desk on September 3, 2026. Bills presented after the Legislature adjourned on August 31 must be signed or vetoed within thirty days.
Who supports and opposes SB 1094?
The Senate Floor Analyses analysis dated August 26, 2026 lists 22 organizations in support and 19 in opposition. Supporters include America's Health Insurance Plans; America's Physician Groups; American Federation of State, County and Municipal Employees. Opponents include Alliance for Patient Access; Alliance for Safe Biologic Medicines; Amgen.
What happens next with SB 1094?
The Governor can sign it, veto it, or let it become law without a signature. Until then, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect.