The 2018-19 Budget: Analysis of the Governor's 340B Medi-Cal Proposal

Mar 21, 2018 - The contract pharmacy purchases a prescription drug from a manufacturer at a negotiated sales price ($13), which generally would be higher than the 340B price at which that drug would have been sold to a covered entity.
https://lao.ca.gov/Publications/Report/3790

The 2025-26 Budget: Health Care Access and Information

Feb 20, 2025 - Historically, prescription drug prices have tended to grow faster than prices for overall consumer goods and services. As Figure  5 shows, however, as measured by the consumer price index, prescription drug cost inflation has slowed over the past 50 years.
https://lao.ca.gov/Publications/Report/4979

The 2025-26 Budget: Medi-Cal Pharmacy Spending

Apr 3, 2025 - Under these formulas, a dru g ’s initial rebate is between 13  percent and 23  percent of its price, depending on the type of drug. Over time, the initial rebate increases if the drug ’s price rises faster than inflation.
https://lao.ca.gov/Publications/Report/5026

The 2019-20 Budget: Analysis of the Carve Out of Medi-Cal Pharmacy Services From Managed Care

Apr 5, 2019 - This is not necessarily true in Medi ‑Cal managed care since plans pay pharmacies at negotiated prices for all the drugs paid for by the plan. These negotiated prices are often higher than the discounted costs associated with acquiring 340B drugs.
https://lao.ca.gov/Publications/Report/3997

The 2022-23 Budget: Health Care Access and Affordability

Feb 23, 2022 - The stated intent is to increase the availability of insulin that is priced at a fraction of current market prices. According to the administration, more detail on this proposal will be released in the spring.
https://lao.ca.gov/Publications/Report/4560

The 2025-26 California Spending Plan: Health

Oct 16, 2025 - To maintain licensure, these entities must (1)  act in a payor ’s best interests; (2)  submit financial statements to DMHC; and (3)  submit drug pricing data to HCAI, among other requirements. Pharmacy benefit managers are to pay annual fees to support DMHC ’s and HCAI ’s ongoing regulatory costs.
https://lao.ca.gov/Publications/Report/5075

The 2018-19 Budget: The Administration's Proposition 55 Estimates in the May Revision

May 22, 2018 - These are: (1) statutory cost ‑of ‑living adjustments, (2) chaptered legislation, (3) one ‑time expenditures, (4) the full ‑year costs of partial ‑year programs, (5) costs incurred pursuant to constitutional requirements, (6) federal mandates, (7) court ‑ordered mandates, (8) state employee merit salary adjustments, and (9) state agency operating expense and equipment cost adjustments to reflect price increases.
https://lao.ca.gov/Publications/Report/3844

The 2024-25 California Spending Plan: Health

Sep 17, 2024 - State law provides for increases in Medi-Cal county administration funding based on projected growth in the California Consumer Price Index. The spending plan pauses these increases through 2027-28, for a savings of $20.4  million General Fund in 2024-25, growing to a projected $88.8  million in 2027-28.
https://lao.ca.gov/Publications/Report/4930

The 2018-19 Budget: Governor's May Revision Medi-Cal Budget

May 14, 2018 - This would free up additional General Fund resources that could be used to fund other new programs or, alternatively, saved for economic uncertainties. 340B Drug Pricing Program Medi-Cal Proposal Governor ’s May Revision Budget Maintains Proposal to Eliminate the Use of the 340B Drug Pricing Program in Medi-Cal.
https://lao.ca.gov/Publications/Report/3839

The 2022-23 Budget: Medi-Cal Fiscal Outlook

Nov 17, 2021 - As Medi ‑Cal price inflation and broader measures of inflation in the economy are different, the Medi ‑Cal Outlook does not project any substantially increased cost from inflationary pressures. Should they arise, however, General Fund cost pressure in Medi ‑Cal could be higher than we project.
https://lao.ca.gov/Publications/Report/4474