LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeBusiness and Professions CodeDiv. 2Ch. 9.5§ 4434 Pharmacy Audit Confidentiality Rules

§ 4434 Pharmacy Audit Confidentiality Rules

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

§ 4434 Pharmacy Audit Confidentiality Rules

Key Takeaways

  • •Pharmacy audit info must stay private. Only the company paying for the audit can see it.
  • •If someone else does the audit for the company, they must tell the pharmacy they have a privacy agreement.
  • •After checking papers at the pharmacy, auditors must give a list of what they looked at before leaving.

Example

A big insurance company hires a small firm to check if a local pharmacy is doing things right.

The small firm can’t tell anyone else what they find—only the insurance company can know. Before they start, they must tell the pharmacy they have a privacy deal with the insurance company. When they finish looking at papers, they must give the pharmacy a list of everything they checked.

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

Official Source
View on CA.gov

§ 4434 Pharmacy Audit Confidentiality Rules

(a) Except as otherwise prohibited by state or federal law, an entity conducting a pharmacy audit shall keep confidential any information collected during the course of the audit and shall not share any information with any person other than the carrier, pharmacy benefit manager, or third-party payer for which the audit is being performed. An entity conducting a pharmacy audit shall have access only to previous audit reports relating to a particular pharmacy conducted by or on behalf of the same entity. Nothing in this subdivision shall be construed to authorize access to information that is otherwise prohibited by law. Nothing in this subdivision shall be construed to prohibit any employer, trust fund, government agency, or any other entity for which the audit is being performed from disclosing its general opinions or conclusions regarding the business practices of the pharmacy based on the audit. (b) An entity that is not a carrier or pharmacy benefit manager and that is conducting a pharmacy audit on behalf of a carrier or pharmacy benefit manager shall, prior to conducting the audit, notify the pharmacy in writing that the entity and the carrier or pharmacy benefit manager have executed a business associate agreement or other agreement as required under state and federal privacy laws. (c) An entity conducting a pharmacy audit shall, prior to leaving a pharmacy at the end of an onsite portion of the audit, provide the pharmacist in charge with a complete list of records reviewed to allow the pharmacy to account for disclosures as required by state and federal privacy laws. (Added by Stats. 2012, Ch. 706, Sec. 1. (SB 1195) Effective January 1, 2013.)

Last verified: January 22, 2026

Key Terms

agreementinformationemployerbenefitportpharmacy

Related Statutes

  • § 4431 Audit Exemptions For Fraud
  • § 4432 Pharmacy Contract Compliance Rules
  • § 10241.4 Balloon Payment Loan Disclosure
  • § 3777 Respiratory Care License Renewal
  • § 4192 Clinic Pharmacy Oversight Requirements

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 4434.
View Official Source