BILL NUMBER: AB 2132	CHAPTERED  09/21/02

	CHAPTER  751
	FILED WITH SECRETARY OF STATE  SEPTEMBER 21, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 20, 2002
	PASSED THE ASSEMBLY  AUGUST 30, 2002
	PASSED THE SENATE  AUGUST 28, 2002
	AMENDED IN SENATE  AUGUST 26, 2002
	AMENDED IN ASSEMBLY  MAY 28, 2002
	AMENDED IN ASSEMBLY  APRIL 29, 2002
	AMENDED IN ASSEMBLY  APRIL 17, 2002

INTRODUCED BY   Assembly Member Matthews

                        FEBRUARY 20, 2002

   An act to add Section 14100.95 to the Welfare and Institutions
Code, relating to Medi-Cal.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2132, Matthews.  Medi-Cal:  medical supplies:  contracts.
   Existing law provides for the Medi-Cal program, which is
administered by the State Department of Health Services, pursuant to
which medical benefits are provided to public assistance recipients
and certain other low-income persons.  Existing law authorizes the
department to enter into contracts with manufacturers of
single-source and multiple-source drugs, on a bid or nonbid basis,
for drugs from each major therapeutic category, and requires the
department to maintain a list of those drugs for which contracts have
been executed.
   This bill would require the department to enter into demonstration
contracts with manufacturers of medical supplies for four items of
medical supplies existing on a designated pharmacy claims processing
system.  It would also require the department to maintain a list of
the supplies for which contracts have been executed.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  It is the intent of the Legislature that the
implementation of this act by the State Department of Health Services
shall be cost-neutral and shall not result in increased costs to the
department.
  SEC. 2.  Section 14100.95 is added to the Welfare and Institutions
Code, to read:
   14100.95.  (a) The department shall enter into demonstration
contracts with manufacturers of medical supplies for four items of
its own selection of medical supplies existing on the pharmacy claims
processing system, for the purpose of establishing rebates or other
cost-saving mechanisms and demonstrating cost savings in the purchase
of these medical supplies.  The department shall maintain a list of
the supplies for which contracts have been executed.
   (b) Nothing in this section shall prevent a small retail business
from continuing to supply medical supplies for use by Medi-Cal
beneficiaries.
   (c) In establishing these demonstration contracts, the department
shall preserve reasonable access to these supplies by beneficiaries.

   (d) The department shall report the outcomes of these
demonstration contracts to the Legislature no later than January 1,
2007.