SB 1195

  • California Senate Bill
  • 2011-2012 Regular Session
  • Introduced in Senate Feb 22, 2012
  • Passed Senate May 31, 2012
  • Passed Assembly Aug 20, 2012
  • Signed by Governor Sep 28, 2012

Audits of pharmacy benefits.

Abstract

Existing law, the Pharmacy Law, provides for the licensure and regulation of pharmacies by the California State Board of Pharmacy. Existing law provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and for the regulation of health insurers by the Department of Insurance. Existing law requires health care service plan contracts and health insurance policies to provide coverage for specified benefits and requires contracts between plans or insurers and providers to contain provisions requiring a fast, fair, and cost-effective dispute resolution mechanism. This bill would impose specified requirements on an audit of pharmacy services provided to beneficiaries of a health benefit plan. Among other things, the bill would prohibit the entity conducting the audit from receiving payment on any basis tied to the amount claimed or recovered from the pharmacy. The bill would require the entity conducting a pharmacy audit to deliver a preliminary audit report to the pharmacy and to give the pharmacy an opportunity to respond to the report. The bill would require the entity to deliver a final audit report to the pharmacy and to establish, in its contract with the pharmacy, a process for appealing the findings of that report, as specified. The bill would allow either party who, following the appeal, is not satisfied with the appeal, to seek relief under the terms of the contract. The bill would provide that if an identified discrepancy for a single audit exceeds $30,000, future payments to the pharmacy in excess of $30,000 may be withheld pending adjudication of an appeal. The bill would prohibit interest accruing for either party during pendency of the audit, as specified. The bill would require that when the entity is using extrapolation, as defined, in calculating penalties or amounts to be recouped from a pharmacy, that the pharmacy be given an opportunity to provide evidence validating certain orders. The bill also would prohibit a pharmacy from being subject to recoupment of funds for a clerical or recordkeeping error, as defined. The bill would enact other related provisions.

Bill Sponsors (1)

Votes


Actions


Sep 28, 2012

California State Legislature

Approved by the Governor.

California State Legislature

Chaptered by Secretary of State. Chapter 706, Statutes of 2012.

Sep 12, 2012

California State Legislature

Enrolled and presented to the Governor at 11 a.m.

Aug 31, 2012

Assembly

Read third time. Passed. (Ayes 80. Noes 0. Page 6765.) Ordered to the Senate.

Assembly

Assembly Rule 63 suspended. (Page 6750.)

Assembly

Read second time. Ordered to third reading.

Senate

Assembly amendments concurred in. (Ayes 35. Noes 0. Page 5099.) Ordered to engrossing and enrolling.

Senate

In Senate. Concurrence in Assembly amendments pending.

Aug 30, 2012

Assembly

Read second time and amended. Ordered to second reading.

Aug 29, 2012

Assembly

From committee: Do pass as amended. (Ayes 18. Noes 0.) (August 29).

Aug 28, 2012

Assembly

Joint Rule 62(a) file notice suspended. (Ayes 51. Noes 27. Page 6468.)

Assembly

Re-referred to Com. on HEALTH pursuant to Assembly Rule 77.2.

  • Referral-Committee
Com. on HEALTH pursuant to Assembly Rule 77.2.

Aug 24, 2012

Assembly

In Assembly. Held at Desk.

Senate

Action rescinded whereby the bill was read third time, passed, and ordered to the Senate.

Aug 23, 2012

Senate

Withdrawn from engrossing and enrolling.

Senate

Ordered to the Assembly.

Senate

Action rescinded whereby the Assembly amendments were concurred in.

Aug 22, 2012

Senate

Assembly amendments concurred in. (Ayes 37. Noes 0. Page 4677.) Ordered to engrossing and enrolling.

Aug 21, 2012

Senate

In Senate. Concurrence in Assembly amendments pending.

Aug 20, 2012

Assembly

Read third time. Passed. (Ayes 76. Noes 1. Page 6013.) Ordered to the Senate.

Aug 13, 2012

Assembly

Ordered to third reading.

Assembly

Read third time and amended. (Ayes 79. Noes 0. Page 5899.)

Aug 06, 2012

Assembly

Read second time. Ordered to third reading.

Jul 05, 2012

Assembly

From committee: Do pass. (Ayes 13. Noes 0.) (July 3).

Jun 26, 2012

Assembly

From committee with author's amendments. Read second time and amended. Re-referred to Com. on HEALTH.

  • Reading-2
  • Reading-1
  • Committee-Passage
  • Amendment-Passage
  • Referral-Committee
Com. on HEALTH.

Jun 14, 2012

Assembly

Referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

May 31, 2012

Assembly

In Assembly. Read first time. Held at Desk.

Senate

Read third time. Passed. (Ayes 23. Noes 10. Page 3745.) Ordered to the Assembly.

May 08, 2012

Senate

Read second time. Ordered to third reading.

May 07, 2012

Senate

Ordered to second reading.

Senate

Withdrawn from committee.

May 01, 2012

Senate

Read second time and amended. Re-referred to Com. on RLS.

  • Reading-2
  • Reading-1
  • Amendment-Passage
  • Referral-Committee
Com. on RLS.

Apr 30, 2012

Senate

From committee: Do pass as amended and re-refer to Com. on RLS. (Ayes 5. Noes 2. Page 3306.) (April 25).

Apr 10, 2012

Senate

Set for hearing April 24.

Apr 09, 2012

Senate

Set, first hearing. Hearing canceled at the request of author.

Apr 05, 2012

Senate

Set for hearing April 18.

Mar 29, 2012

Senate

Re-referred to Coms. on HEALTH and RLS.

  • Referral-Committee
Coms. on HEALTH and RLS.

Mar 26, 2012

Senate

From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

  • Reading-2
  • Reading-1
  • Committee-Passage
  • Amendment-Passage
  • Referral-Committee
Com. on RLS.

Mar 01, 2012

Senate

Referred to Com. on RLS.

  • Referral-Committee
Com. on RLS.

Feb 23, 2012

Senate

From printer. May be acted upon on or after March 24.

Feb 22, 2012

Senate

Introduced. Read first time. To Com. on RLS. for assignment. To print.

Bill Text

Bill Text Versions Format
SB1195 HTML
02/22/12 - Introduced PDF
03/26/12 - Amended Senate PDF
05/01/12 - Amended Senate PDF
06/26/12 - Amended Assembly PDF
08/13/12 - Amended Assembly PDF
08/30/12 - Amended Assembly PDF
09/10/12 - Enrolled PDF
09/28/12 - Chaptered PDF

Related Documents

Document Format
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Sources

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