SB390 - Pharmacy Audit Integrity Act

• Establishes minimum and uniform standards for audits of pharmacy records by managed care companies, health benefit plans, pharmacy benefit managers, and state health programs.

• Requires auditing entities to provide pharmacies with at least two weeks' written notice before conducting audits, include a documented checklist of items to be audited, and obtain receipts for any records taken during on-site audits.

• Prohibits use of extrapolation accounting practices in calculating recoupments or penalties; limits audit periods to two years from claim submission and restricts audit initiation to dates outside the first five calendar days of each month.

• Prescribes audit report timelines requiring preliminary reports within 120 days and final reports within 180 days, with pharmacies allowed 30 days to respond to preliminary findings.

• Establishes a written appeals process for pharmacies to contest audit findings, with provision for certified mediation if disputes remain unresolved; does not apply to audits involving alleged fraud or willful misrepresentation.