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§ 4436 Pharmacy Audit Clinical Standards

§ 4436 Pharmacy Audit Clinical Standards

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

§ 4436 Pharmacy Audit Clinical Standards

Key Takeaways

  • •If someone checks a pharmacy's work and needs to make a decision about medicine, a licensed pharmacist must be involved.
  • •The person checking the pharmacy must follow the same rules as the pharmacy when deciding if a prescription is valid.
  • •The checker can still say 'no' to paying for medicine if the pharmacy didn't follow certain rules, like getting approval first or giving the right amount.
  • •The checker must accept both paper and electronic records that show the pharmacy gave medicine to the patient.

Example

A pharmacy gives medicine to a patient and sends the bill to the insurance company. The insurance company checks the pharmacy's records to make sure everything is correct.

The insurance company must have a pharmacist help decide if the medicine was given correctly. They must follow the same rules as the pharmacy when checking prescriptions. They can refuse to pay if the pharmacy didn't get approval first, but they must accept the pharmacy's records whether they are on paper or electronic.

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

Official Source
View on CA.gov

§ 4436 Pharmacy Audit Clinical Standards

(a) A pharmacy audit that involves clinical judgment shall be conducted by, or in consultation with, a licensed pharmacist. (b) An entity conducting a pharmacy audit shall make all determinations regarding the legal validity of a prescription or other record consistent with determinations made pursuant to Article 4 (commencing with Section 4070) of Chapter 9. (c) Nothing in this section shall be construed to prohibit a pharmacy benefits manager from denying a claim, either in whole or in part, for failure to comply with federal Food and Drug Administration or manufacturer requirements, the prescription drug formulary, prior authorization requirements, days’ supply requirements, or other coverage or plan design requirement, or for failure to include a National Provider Identification number. (d) An entity conducting a pharmacy audit shall accept paper or electronic signature logs that document the delivery of pharmacy services to a health plan beneficiary or his or her agent. (Added by Stats. 2012, Ch. 706, Sec. 1. (SB 1195) Effective January 1, 2013.)

Last verified: January 22, 2026

Key Terms

prescriptioninsurancejudgmentcoveragepatientterminationclaimmedical

Related Statutes

  • § 4430 Health Plan Definitions
  • § 4433 Pharmacy Audit Payment Restrictions
  • § 2746.54 Midwife Patient Disclosure Requirements
  • § 2878.1 Nurse Misconduct Reporting Duty
  • § 3702 Respiratory Care Practice Standards

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 4436.
View Official Source