California FQHCs Sue State Over Lost 340B Reimbursements

A group of federally qualified health centers (FQHCs) in California are suing the state to protest the change to pharmacy purchasing that eliminates millions in savings through the Medicaid 340B Drug Pricing Program. On January 1, 2022, the California Department of Health Care Services (DHCS) officially launched Medi-Cal Rx, which moves Medicaid pharmacy purchasing to a fee-for-service model managed by Magellan Medication Administration. Previously each of the state’s Medicaid managed care organization (MCO) plans, safety net hospitals, and FQHCs purchased discounted 340B medications directly for their consumers, and as a result were able to retain the . . .