AB 687

This bill allows the Department of Health Services to enter into a value-based

purchasing arrangement with a drug manufacturer for purposes of the Medical

Assistance program. Under the bill, a value-based purchasing arrangement must

have agreed upon metrics and may include rebates, discounts, price reductions, risk

sharing, reimbursements, payment deferrals or installment payments, guarantees,

shared savings payments, withholds, bonuses, or any other thing of value. The bill

specifies that nothing in the bill may be construed to alter or modify coverage

requirements under the Medical Assistance program. The Medical Assistance

program is a joint federal and state program that provides health services to

individuals who have limited financial resources.