Budget BRB 340 B provision Laws 2016 Ch

Budget BRB – 340 B provision • Laws 2016, Ch. 122 extends existing 340 B requirements that apply to FQHCs to other 340 B covered entities • Does not apply to licensed hospitals and outpatient facilities owned or operated by a licensed hospital • AHCCCS must report by November 1, 2016 on feasibility and costs of applying to hospitals Reaching across Arizona to provide comprehensive quality health care for those in need 1

340 B Entities • 340 B entities submit POS and physician administered drug claims – whether or not drugs purchased under 340 B program at lesser of: AAC o 340 B ceiling price o • May also include professional (dispensing) fee Reaching across Arizona to provide comprehensive quality health care for those in need 2

Contracted Pharmacies • Pharmacies contracted with 340 B entities May not be paid for drugs dispensed as part of 340 B program o Shall be paid for non-340 B drugs at regular contracted amounts o • Necessary to deal with rebate issue – state may not “double dip” Reaching across Arizona to provide comprehensive quality health care for those in need 3

Next Steps • AHCCCS cross divisional implementation team • MCO workgroup? • Dispensing fee discussions • CMS approval – 1/1/17? Reaching across Arizona to provide comprehensive quality health care for those in need 4