CMS told a judge last week it "has no authority to second-guess California’s decision" to transfer Medicaid managed care drug benefits to Medicaid fee for service.

CMS Asks Judge to Dismiss 340B Health Centers’ Claims in Suit Over Medicaid Drug Benefits Transfer

The U.S. Centers for Medicare & Medicaid Services (CMS) asked a federal district judge in Sacramento last week to dismiss 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). The health centers say the transfer illegally deprives them of millions of dollars of revenue on billings for 340B purchased drugs.

“CMS has no authority to second-guess California’s decision,” the agency said in a March 10 brief. Missouri, Tennessee, West Virginia, and Wisconsin “carve out pharmaceutical services from their [Medicaid] MCO contracts and provide services directly on an FFS basis under the applicable payment terms set forth in their state plans, just as California has elected to do.”

The U.S. Centers for Medicare & Medicaid Services (CMS) asked a federal district judge in Sacramento last week to dismiss 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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