California – Notice to Pharmacists Regarding Medi-Cal Tax Rates

SALT Report 1304 – The California Board of Equalization issued a sales and use tax table in the Medi-Cal adjudication system to reflect the new statewide tax rate that decreased from 8.25% to 7.25% effective July 1, 2011. The tax rate is the statewide base tax rate of 7.25% plus any applicable district tax in areas with voter-approved district taxes.

Reimbursement for claims billing taxable Healthcare Common Procedure Coding System (HCPCS) and medical supply codes now reflect the correct sales and use tax rate. Claims paid on or after July 1, 2011, at the higher tax rate will be reprocessed by Affiliated Computer System (ACS) to ensure that providers are correctly reimbursed for sales tax. An Erroneous Payment Correction will be initiated to reprocess and collect the additional 1% paid to you in error. No action is required on your part.
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