CA AB399

Establishes requirements for the State Department of Health Care Services to develop and implement an average acquisition cost (AAC) methodology for Medi-Cal pharmacy drug reimbursement to replace the average wholesale price (AWP) method.

Requires Medi-Cal pharmacy providers and drug manufacturers/wholesalers to submit drug price information including invoice prices, discounts, rebates, and refunds to support AAC calculations, with pharmacy invoice information kept confidential.

Mandates the department conduct a survey of pharmacy providers to establish an adjusted professional dispensing fee before implementing the AAC methodology, with statutory authorization required through the budget process.

Requires AAC rates to be updated at least every three months based on pharmacy invoice data from the prior quarter, with 30-day advance notice to providers of any changes.

Provides that all implementation of the AAC methodology must comply with federal Medicaid requirements and obtain federal approval before taking effect.