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AB 97 Pharmacy Drug Exemption Status Update

May 10, 2017

The Department of Health Care Services (DHCS) has finalized its review of Assembly Bill (AB) 97 Pharmacy Drug Exemption Applications submissions postmarked or received electronically between October 01, 2016, and March 31, 2017. A stakeholder update is now available on the updated AB 97 Ten Percent Pharmacy Payment Reductions webpage.

This update also provides information on drugs identified to have met criteria for exemption as outlined in the List of Therapeutic Drug Categories Subject to AB 97 Exemption.


In anticipation of the adoption of an actual acquisition cost (AAC) reimbursement methodology in accordance with Welfare and Institutions Code 14105.45, DHCS has determined that AB 97 ten percent pharmacy payment reductions shall no longer apply to pharmacy billed drug products effective April 1, 2017.

Providers are encouraged to bookmark the updated AB 97 webpage above and visit it often for the most up-to-date information on AB 97 pharmacy payment reductions and SPA 12-014.