GAO: Feds have to improve oversight to stop drug companies from doling out duplicate 340B, Medicaid discounts
Fierce Health Payers January 28, 2020
Editor’s note: A previous version of this story incorrectly identified who receives the drug discounts.
The federal government isn’t doing a good job of determining whether a drug company has to provide both 340B discounts and rebates for Medicaid, a federal watchdog said.
The Government Accountability Office (GAO) said in a report Tuesday (PDF) that the Centers for Medicare & Medicaid Services (CMS) only provides limited oversight of state efforts to quash duplicate discounts. Audits from the Health Resources and Services Administration (HRSA) are also lacking, the report found.
A safety net hospital can qualify to get a 25% to 50% discount for drug products under 340B, but those facilities are not eligible for drug rebates from Medicaid. A...