CA SB521

Authorizes the California Department of Health Care Services to enter into value-based arrangements with drug manufacturers based on outcome data or other metrics for the Medi-Cal program.

Value-based arrangements may include rebates, discounts, price reductions, risk sharing, shared savings payments, or other forms of compensation tied to drug performance.

Requires value-based arrangements to meet drug evaluation criteria under existing law and include terms addressing payment frequency, patient outcome tracking, and drug utilization verification.

Mandates the department submit a report to the Legislature by July 1, 2022, on how value-based arrangements may be implemented in the Medi-Cal program, including recommendations.