AB 2565

Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services through fee-for-service (FFS) or managed care delivery systems. The Medi-Cal program is in part governed by, and funded pursuant to, federal Medicaid program provisions. Under existing law, pharmacist services are a benefit under the Medi-Cal program, subject to federal approval, as specified. Existing law authorizes the department to provide and administer Medi-Cal pharmacy services under a single statewide FFS delivery system, commonly known as the Medi-Cal Rx program. The department has implemented a transition of Medi-Cal pharmacy services, through Medi-Cal Rx, from managed care to FFS as a result of a 2019 executive order by the Governor. This bill would require the department to require each Medi-Cal managed care plan to submit an annual report to the department containing information about pharmacist services that are within the jurisdiction of managed care plans and not within the jurisdiction of the FFS delivery system under the Medi-Cal Rx program. The bill would require the department to compile the information and to submit an annual consolidated report to the appropriate policy and fiscal committees of the Legislature, as specified. The bill would require the consolidated report to contain certain information relating to, among other things, implementation, compliance, service access, claims processing, oversight, and fiscal and public health impact. If the department determines that a managed care plan has failed to comply with the pharmacist services-related provisions, the bill would require the department to take appropriate corrective action, including enforcement action and the imposition of sanctions, if a pattern of noncompliance is identified.