CHA News Article

DHCS Releases Draft All Plan Letter, Provider Bulletin On 340B Program

Last week, the Department of Health Care Services (DHCS) released a draft all plan letter (APL) and provider bulletin that would make changes to the 340B Drug Discount Program.

Specifically, the APL would require that 340B-purchased drugs that are dispensed to a Medi-Cal managed care beneficiary to be identified with the appropriate modifier when billed to the Medi-Cal managed care plan. The APL would also require a covered entity to have an established agreement with its Medi-Cal managed care plan, DHCS and retail pharmacy when 340B-purchased drugs are dispensed to Medi-Cal managed care beneficiaries through a retail pharmacy. The terms of the arrangement must be approved by DHCS before the retail pharmacy can dispense 340B-purchased drugs to Medi-Cal managed care beneficiaries. CHA will work with its 340B workgroup to develop comments on the draft APL, which are due by Dec. 14.      

Commands