United States District Court, Sacramento high-rise building
California 340B health centers' suit against the state's transfer of Medicaid managed care drug benefits to Medicaid fee for service is being heard at the Robert T. Matsui United States Courthouse in Sacramento.

California 340B Health Centers Blast CMS in Court Over its Role in State Medicaid Drug Benefit Transfer

California health centers asked a federal district judge in late April to deny the U.S. Centers for Medicare & Medicaid Services (CMS) motion to dismiss the health centers’ claims against CMS arising over the state’s transfer of Medicaid managed care drug benefits to Medicaid fee for service (FFS).

The health centers say the transfer illegally deprives them of millions of dollars of revenue on billings for 340B purchased drugs. They have sued to force the state Department of Health Care Services (DHCS) and CMS to reverse the drug benefit transfer.

California health centers asked a federal district judge in late April to deny the U.S. Centers for Medicare & Medicaid Services (CMS) motion to dismiss the health centers’ claims against CMS arising over the state’s transfer of Medicaid managed care drug benefits to Medicaid fee for service (FFS).

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