Health and Safety Code section 130404

(a)

With respect to any prescription drug for which a rebate amount has been negotiated pursuant to Section 130403, upon presentation of a program registration card issued pursuant to Section 130401, a participating pharmacy shall charge Medicare beneficiaries a price for a prescription drug that does not exceed the following computed price:

(1)

The Medi-Cal reimbursement rate for the prescription drug, and an amount, as set by the department, to cover electronic transmission charges.

(2)

The amount ascertained pursuant to paragraph (1) shall be reduced by the rebate amount negotiated by the department pursuant to Section 130403.

(b)

The pharmacy shall request, and the department shall provide, through electronic means, the price to be charged pursuant to this section.

(c)

This division shall not apply to any prescription that is covered by insurance.

Source: Section 130404, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=HSC§ionNum=130404.­ (updated Jan. 1, 2003; accessed Aug. 11, 2025).

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Verified:
Aug. 11, 2025

§ 130404's source at ca​.gov