4425.  (a) As a condition of a pharmacy's participation in the
Medi-Cal program pursuant to Chapter 7 (commencing with Section
14000) of Division 9 of the Welfare and Institutions Code, the
pharmacy, upon presentation of a valid prescription for the patient
and the patient's Medicare card, shall charge Medicare beneficiaries
a price that does not exceed the Medi-Cal reimbursement rate for
prescription medicines, and an amount, as set by the State Department
of Health Services to cover electronic transmission charges.
However, Medicare beneficiaries shall not be allowed to use the
Medi-Cal reimbursement rate for over-the-counter medications or
compounded prescriptions.
   (b) The State Department of Health Services shall provide a
mechanism to calculate and transmit the price to the pharmacy, but
shall not apply the Medi-Cal drug utilization review process for
purposes of this section.
   (c) The State Department of Health Services shall monitor pharmacy
participation with the requirements of subdivision (a).
   (d) If prescription drugs are added to the scope of benefits
available under the federal Medicare program, the Senate Office of
Research shall report that fact to the appropriate committees of the
Legislature.  It is the intent of the Legislature to evaluate the
need to continue the implementation of this article under those
circumstances.



4426.  The State Department of Health Services shall conduct a study
of the adequacy of Medi-Cal pharmacy reimbursement rates including
the cost of providing prescription drugs and services.