Maximum Allowable Cost Law – CALIFORNIA

CALIFORNIA SUMMARY OF EXISTING LAW

Requires PBMs using MAC pricing to update the MAC lists every 7 days. The state has a MAC appeals process and describes the next steps if the appeal is upheld or denied.

Link to Existing Law: Cal. Bus. & Prof. Code § 4440

PRACTICAL NOTE FOR EXISTING LAW

This is a fairly standard MAC law. Interestingly, if an appeal is denied, the PBM must provide the pharmacy the reason for the denial as well as the NDC of an equivalent drug that may be purchased by a similarly situated pharmacy at the price that is equal to or less than the maximum allowable cost of the appealed drug. However, given the appeal can only be made to the PBM, there is opportunity to advocate for a stronger regulatory scheme and oversight of PBM.