Medi-Cal Prescription Drug Carve-Out Managed By Magellan To Launch On January 1, 2022

The California Department of Health Care Services (DHCS) is preparing to launch its Medicaid prescription drug coverage (Medi-Cal Rx) fee-for-service (FFS) carve out on January 1, 2022. Previously, prescription costs were covered by the state’s Medicaid managed care organization (MCO) plans. The Medi-Cal Rx program will be managed by Magellan Health, Inc., under a contract awarded in December 2019. In early December 2021, DHCS notified Medicaid beneficiaries about the change in how their prescriptions will be managed. Through this contract, the state expects to have greater leverage in negotiating with pharmaceutical companies, standardizing the Medi . . .