California's state health department asked a judge yesterday to reject 340B community health centers' request to halt a major state Medicaid drug reimbursement change that began on Jan. 1.

California Asks Judge to Reject 340B Community Health Centers’ Request to Stop Medicaid Drug Payment Change

Federally qualified health clinics in California have no right to sue to stop a major state Medicaid drug reimbursement change that began on Jan. 1., the state Department of Health Care Services (DHCS) argued in a legal brief filed Wednesday.

An association of state FQHCs sued DHCS in federal district court in Sacramento late last month after the U.S. Centers for Medicare & Medicaid Services granted a wide-ranging waiver to reform California’s Medicaid program. It included the transition of its Medicaid managed care prescription drug program to Medicaid fee for service. Under Medi-Cal FFS, providers bill at acquisition cost for 340B drugs. Under Medi-Cal managed care, they could bill at higher negotiated rates.

Federally qualified health clinics in California have no right to sue to stop a major state Medicaid drug reimbursement change that began on Jan. 1., the state Department of Health Care Services (DHCS) argued in a legal brief filed Wednesday.

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