CMS again asked a federal district court to dismiss California 340B health centers’ lawsuit over the state’s transfer of Medicaid managed care drug benefits to Medicaid fee for service.

CMS Asks Court Again to Dismiss 340B Health Centers’ Suit Over Medicaid Drug Benefits Transfer

The U.S. Centers for Medicare & Medicaid Services (CMS) last week again asked a federal district court in Sacramento to dismiss a group of California health centers’ claims for relief over CMS’s approval of the state’s transfer of Medicaid managed care drug benefits to Medicaid fee for service (FFS).

CMS initially asked the court in March to dismiss Community Health Center Alliance for Patient Access’ (CHCAPA) complaints against it. CHCAPA wants the court to enjoin the state Medicaid program, Medi-Cal, from continuing to implement the drug benefits transfer, called Medi-Cal Rx, which began early this year. The health centers say the transfer illegally deprives them of millions of dollars of revenue on billings for 340B purchased drugs. They are suing both Medi-Cal and CMS.

The U.S. Centers for Medicare & Medicaid Services (CMS) last week again asked a federal district court in Sacramento to dismiss a group of California health centers’ claims for relief over CMS’s approval of the state’s transfer of Medicaid managed care drug benefits to Medicaid fee for service (FFS).

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