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HomeBusiness and Professions CodeDiv. 2Ch. 9.5§ 4432 Pharmacy Contract Compliance Rules

§ 4432 Pharmacy Contract Compliance Rules

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 4432 Pharmacy Contract Compliance Rules

Key Takeaways

  • •This law is about contracts between pharmacies and insurance companies or pharmacy benefit managers.
  • •Any new or updated contract after January 1, 2013, must follow the rules in this chapter.
  • •This law does not apply to contracts covered by a different law (Section 4600.2 of the Labor Code).

Example

A local pharmacy signs a new contract with an insurance company to provide medicines to people with health insurance.

The contract must follow the rules in this law because it was signed after January 1, 2013. If the pharmacy doesn't follow these rules, they could get in trouble.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 4432 Pharmacy Contract Compliance Rules

Notwithstanding any other law, a contract that is issued, amended, or renewed on or after January 1, 2013, between a pharmacy and a carrier or a pharmacy benefit manager to provide pharmacy services to beneficiaries of a health benefit plan shall comply with the provisions of this chapter. This chapter shall not apply to contracts authorized by Section 4600.2 of the Labor Code. (Amended by Stats. 2015, Ch. 74, Sec. 2. (AB 627) Effective January 1, 2016.)

Last verified: January 22, 2026

Key Terms

insurancehealthbenefitcontractpharmacylabor codestarting january

Related Statutes

  • § 4433 Pharmacy Audit Payment Restrictions
  • § 4430 Health Plan Definitions
  • § 4431 Audit Exemptions For Fraud
  • § 4079 Pharmacy Price Disclosure
  • § 4434 Pharmacy Audit Confidentiality Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 4432.
View Official Source