340B Reform Group Offers Solutions to Problems Cited in OIG Report

February 20, 2014

Medicine Access & Compliance Coalition Developing Private-Based Initiatives to Correct Drug Pricing Program’s Irregularities

WASHINGTON, Feb. 20, 2014 /PRNewswire-USNewswire/ — The Medicine Access & Compliance Coalition (MACC), a 340B drug pricing reform group, has offered concrete solutions to address concerns and a lack of transparency cited in the recent Office of Inspector General (OIG) Report. The 340B program gives safety net hospitals and clinics, known as covered entities, access to discounted outpatient medications from pharmaceutical manufacturers. Improved access to these discounted medications directly improves patient outcomes.

In its February 2014 Report, OIG evaluated the Health Resources and Services Administration’s (HRSA) oversight of 340B related to contract pharmacies and found that some contract pharmacies create complications. However, the complications cited in the Report are not specific to just contract pharmacies. In fact, hospital owned pharmacies and their split billing systems could pose a greater concern as they contribute to an estimated 75% of all 340B sales. Diversion created by HRSA’s lack of clarity on patient definition, and duplicate discounts created by unclear use of Medicaid managed care prescriptions are equally problematic from both contract or covered entity owned pharmacies.

MACC is working to address the concerns cited in the Report, and it hopes to partner with other organizations to maintain the integrity of the program. Two of MACC’s proposals would directly address the irregularities cited in the OIG Report.

1) A 340B national database of State Medicaid Programs that will prevent duplicative discounts; and

2) Trusted third-party certification that will assure transparency and uniform standards for program audits.

Responding to the Report, MACC President, Edward Gilmartin said, “The OIG findings come as no surprise. A lack of clarity by HRSA has made it difficult for the 340B community to adhere to best practices. MACC has been pushing for a standardization and certification program upon which pharmaceutical manufacturers, as well as safety net providers, can agree. Now is the time to implement these policies. We want to be part of the solution. Sensible private reforms will reinforce the integrity of this critical program for all stakeholders and protect the supply of discount medicine to safety net patients.”

The Medicine Access & Compliance Coalition (MACC) is an independent, not-for-profit organization, working to maintain the integrity of the 340B Drug Pricing Program by offering private-based solutions.

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SOURCE Medicine Access & Compliance Coalition (MACC)

Source: PR Newswire

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