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BREAKING: GAO Criticizes Policing of 340B Duplicate Discounts

BREAKING: GAO Criticizes Policing of 340B Duplicate Discounts

The U.S. Department of Health and Human Services (HHS) lacks “reasonable assurance” that states and healthcare providers are complying with the prohibition against subjecting drug manufacturers to payment of duplicate 340B discounts and Medicaid rebates on the same drugs, the U.S. Government Accountability Office (GAO) said in a report today. Existing limited oversight of 340B and the Medicaid Drug Rebate Program (MDRP) “may increase the risk that duplicate discounts occur,” the congressional watchdog agency said.

GAO recommended that the Centers for Medicare & Medicaid Services (CMS), which oversees MDRP, should ensure that state Medicaid programs have written policies and procedures to prevent duplicate discounts and forgone rebates. It also said the Health Resources and Services Administration (HRSA), which oversees 340B, should incorporate 340B covered entities’ compliance with state policies into its audits, and require covered entities to work with manufacturers regarding repayment of identified duplicate discounts in managed care. HHS agreed with the recommendation to CMS, but disagreed with those to HRSA.

BREAKING: GAO Criticizes Policing of 340B Duplicate Discounts The U.S. Department of Health and Human Services (HHS) lacks “reasonable assurance” that states and healthcare providers are complying with the prohibition against subjecting drug manufacturers to payment of duplicate 340B discounts...

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