AB 311

This bill requires certain entities, when billing the Medical Assistance (MA)

program for reimbursement of a prescription drug, to bill the actual acquisition cost

of the prescription drug and the dispensing fee charged under the MA program.

Under current law, the MA program provides coverage for prescription drugs

as a benefit. The federal government, under current federal law, has an agreement

with drug manufacturers to limit the price of certain drugs purchased by covered

entities to the average manufacturer price reduced by any rebate percentage.

"Covered entity" is defined in federal law and, for purposes of this bill, means certain

family planning projects and certain entities that receive funds related to treatment

of sexually-transmitted diseases or tuberculosis. This bill specifies that a covered

entity must charge the actual acquisition cost of a prescription drug and the standard

MA dispensing fee when billing the MA program for reimbursement.