Section 125191 Of Article 1. Genetically Handicapped Persons Program From California Health And Safety Code >> Division 106. >> Part 5. >> Chapter 2. >> Article 1.
125191
. (a) The department may enter into contracts with one or
more manufacturers on a negotiated or bid basis as the purchaser, but
not the dispenser or distributor, of factor replacement therapies
under the Genetically Handicapped Persons Program for the purpose of
enabling the department to obtain the full range of available
therapies and services required for clients with hematological
disorders at the most favorable price and to enable the department,
notwithstanding any other state law, to obtain discounts, rebates, or
refunds from the manufacturers based upon the large quantities
purchased under the program. This subdivision does not interfere with
the usual and customary distribution practices of factor replacement
therapies. In order to achieve maximum cost savings, the Legislature
hereby determines that an expedited contract process under this
section is necessary. Therefore, a contract under this subdivision
may be entered into on a negotiated basis and is exempt from Chapter
2 (commencing with Section 10290) of Part 2 of Division 2 of the
Public Contract Code and Chapter 6 (commencing with Section 14825) of
Part 5.5 of Division 3 of Title 2 of the Government Code. Contracts
entered pursuant to this subdivision shall be confidential and shall
be exempt from disclosure under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code).
(b) (1) Factor replacement therapy manufacturers shall calculate
and pay interest on late or unpaid rebates. The interest does not
apply to any prior period adjustments of unit rebate amounts or
department utilization adjustments. Manufacturers shall calculate and
pay interest on late or unpaid rebates for quarters that begin on or
after the effective date of the act that added this subdivision.
(2) Following the final resolution of any dispute regarding the
amount of a rebate, any underpayment by a manufacturer shall be paid
with interest calculated pursuant to paragraph (4), and any
overpayment, together with interest at the rate calculated pursuant
to paragraph (4), shall be credited by the department against future
rebates due.
(3) Interest pursuant to paragraphs (1) and (2) shall begin
accruing 38 calendar days from the date of mailing the invoice,
including supporting utilization data sent to the manufacturer.
Interest shall continue to accrue until the date of mailing of the
manufacturer's payment.
(4) Interest rates and calculations pursuant to paragraphs (1) and
(2) shall be identical to interest rates and calculations set forth
in the federal Centers for Medicare and Medicaid Services' Medicaid
Drug Rebate Program Releases or regulations.
(c) If the department has not received a rebate payment, including
interest, within 180 days of the date of mailing of the invoice,
including supporting utilization data, a factor replacement therapy
manufacturer's contract with the department shall be deemed to be in
default and the contract may be terminated in accordance with the
terms of the contract. This subdivision does not limit the department'
s right to otherwise terminate a contract in accordance with the
terms of that contract.
(d) The department may enter into contracts on a bid or negotiated
basis with manufacturers, distributors, dispensers, or suppliers of
pharmaceuticals, appliances, durable medical equipment, medical
supplies, and other product-type health care services and
laboratories for the purpose of obtaining the most favorable prices
to the state and to assure adequate access and quality of the product
or service. In order to achieve maximum cost savings, the
Legislature hereby determines that an expedited contract process
under this subdivision is necessary. Therefore, contracts under this
subdivision may be entered into on a negotiated basis and shall be
exempt from Chapter 2 (commencing with Section 10290) of Part 2 of
Division 2 of the Public Contract Code and Chapter 6 (commencing with
Section 14825) of Part 5.5 of Division 3 of Title 2 of the
Government Code.
(e) The department may contract with one or more manufacturers of
each multisource prescribed product or supplier of outpatient
clinical laboratory services on a bid or negotiated basis. Contracts
for outpatient clinical laboratory services shall require that the
contractor be a clinical laboratory licensed or certified by the
State of California or certified under Section 263a of Title 42 of
the United States Code. This subdivision shall not be construed as
prohibiting the department from contracting with less than all
manufacturers or clinical laboratories, including just one
manufacturer or clinical laboratory, on a bid or negotiated basis.