BILL NUMBER: SB 393	CHAPTERED  10/10/99

	CHAPTER   946
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 7, 1999
	AMENDED IN ASSEMBLY   SEPTEMBER 3, 1999
	AMENDED IN ASSEMBLY   AUGUST 16, 1999
	AMENDED IN ASSEMBLY   JULY 2, 1999
	AMENDED IN SENATE   JUNE 7, 1999
	AMENDED IN SENATE   MAY 6, 1999
	AMENDED IN SENATE   MARCH 18, 1999

INTRODUCED BY   Senator Speier
   (Principal coauthor:  Senator Leslie)
   (Coauthor:  Assembly Member Jackson)

                        FEBRUARY 12, 1999

   An act to add and repeal Article 24 (commencing with Section 4425)
of Chapter 9 of Division 1 of the Business and Professions Code,
relating to prescription drugs.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 393, Speier.  Pharmacies:  prescription benefits:  Medicare
beneficiaries.
   Existing law provides for the Medi-Cal program, administered by
the State Department of Health Services, under which qualified
low-income persons are provided with health care services, including
prescription benefits.  Under existing law, the department pays
participating pharmacists a discounted price for drugs on the
Medi-Cal drug formulary.  Existing law separately regulates the
operation of pharmacies.
   This bill would authorize payment of a price not to exceed the
Medi-Cal reimbursement rate for prescription medicines, and an amount
to cover electronic transmission charges by Medicare beneficiaries,
upon showing their Medicare card and prescription, as a condition of
a pharmacy's participation in the Medi-Cal program.
   The bill would also require the State Department of Health
Services to conduct a study of the adequacy of Medi-Cal pharmacy
reimbursement rates, including the cost of providing prescription
drugs and services.
   This bill would provide that these provisions are repealed as of
January 1, 2003.


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


  SECTION 1.  Article 24 (commencing with Section 4425) is added to
Chapter 9 of Division 1 of the Business and Professions Code, to
read:

      Article 24.  Prescription Rates for Medicare Beneficiaries

   4425.  (a) As a condition of a pharmacy's participation in the
Medi-Cal program pursuant to Chapter 7 (commencing with Section
14000) of Division 9 of the Welfare and Institutions Code, the
pharmacy, upon presentation of a valid prescription for the patient
and the patient's Medicare card, shall charge Medicare beneficiaries
a price that does not exceed the Medi-Cal reimbursement rate for
prescription medicines, and an amount, as set by the State Department
of Health Services to cover electronic transmission charges.
However, Medicare beneficiaries shall not be allowed to use the
Medi-Cal reimbursement rate for over-the-counter medications or
compounded prescriptions.
   (b) The State Department of Health Services shall provide a
mechanism to calculate and transmit the price to the pharmacy, but
shall not apply the Medi-Cal drug utilization review process for
purposes of this section.
   (c) The State Department of Health Services shall monitor pharmacy
participation with the requirements of subdivision (a) and report to
the Legislature annually on that participation.  The report shall
include, but shall not be limited to, information on any pharmacies
that discontinue participation in the Medi-Cal program, and the
reasons given for the discontinuance.
   (d) If prescription drugs are added to the scope of benefits
available under the federal Medicare program, the Senate Office of
Research shall report that fact to the appropriate committees of the
Legislature.  It is the intent of the Legislature to evaluate the
need to continue the implementation of this article under those
circumstances.
   4426.  The State Department of Health Services shall conduct a
study of the adequacy of Medi-Cal pharmacy reimbursement rates
including the cost of providing prescription drugs and services.
   4427.  This article shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2003, deletes or extends
that date.