California health centers plan to seek a court order stopping the state from moving Medicaid managed care drug benefits to Medicaid fee for service on Jan. 1.

Calif. Health Centers Will Ask Court to Stop State Medicaid Change That Could Reduce 340B Savings Significantly

As California’s Medicaid program moves toward implementing a fee-for-service payment structure for drug coverage, one of the primary foes of the transition has returned to court to obtain a temporary restraining order.

The new Medi-Cal Rx program is intended to save money for California’s Medicaid program, which insures one out of three of the state’s residents. But by requiring 340B covered entities to bill Medi-Cal at acquisition cost for 340B purchased drugs, the policy is expected to deprive 340B covered entities of revenue critical to sustaining their operations.

As California’s Medicaid program moves toward implementing a fee-for-service payment structure for drug coverage, one of the primary foes of the transition has returned to court to obtain a temporary restraining order.

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