Medi-Cal

Has signed at least 50 contracts with drug manufacturers to provide "additional rebates" under California's budget rescue package. Those include about eight to 10 contract amendments from firms who had rebate contracts directly with the California Medicaid agency rather than HCFA plus roughly 40 other contracts. At least four companies -- Merck, Lilly, Upjohn and Pfizer -- initially informed Medi-Cal that they would not provide the added rebates ("The Pink Sheet" Oct. 5, p. 3). Medi-Cal subsequently has met with all firms that declined. The state does not consider anyone out of the program yet. Eventually, products from firms that do not meet minimum rebate levels will be covered by Medi-Cal only on a prior-authorization basis.