CA SB110

Adds contingency management services as an optional benefit under the Drug Medi-Cal organized delivery system, subject to utilization controls, with incentives that reward participants for specified behaviors such as negative urinalysis results.

Requires counties administering Drug Medi-Cal organized delivery system to submit a readiness plan to the Department of Health Care Services demonstrating capacity to provide contingency management services through electronic and in-person means, after consulting with stakeholders.

Directs the department to issue guidance on contingency management services use and establishes that these services are not rebates, refunds, discounts, or other gratuitous considerations under federal regulations.

Authorizes the department to set limits on the number and value of incentives available to beneficiaries and to implement the law through provider bulletins without formal regulatory action.

Conditions implementation on federal approval, federal financial participation, and compliance with federal law, with the department required to seek necessary federal approvals from the Centers for Medicare and Medicaid Services.