May 340Buzz: No stampede to submit contract pharmacy data
Summary
It’s also the first to emerge from HRSA after several mixed court rulings left the agency unable to enforce any of its previous directives ordering the manufacturers to immediately restore unrestricted 340B contract pharmacy pricing. Assuming Merck maintains its position of non-compliance — in May, the company doubled down by extending its contract pharmacy exclusions to health centers and adding a 45-day look-back limit on replenishment orders — this new letter presumably sets it up on the same course with OIG. This tracks with anecdotal evidence we’ve gathered, including polling results during our recent “Manufacturer Mayhem Marches On” webinar, that suggests most entities remain in wait-and-see mode or are still exploring the possibility. One other thing from the 340B Report webinar that caught my attention was when Vandervelde let slip a new term: “ineligible rebate.” This implies something far different than preventing Medicaid duplicate discounts, the issue purportedly at the center of the contract pharmacy exclusions. In the meantime, Sentry is working hard to make it easier for covered entities grappling with the challenging new reality of contract pharmacy and data submission, with loads of new reporting and automation capabilities.
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