GAO Reports Calls for More Oversight of 340B Contract Pharmacies

In a report released on June 28, the Government Accountability Office (GAO) calls for improvement in federal oversight of compliance at 340B contract pharmacies. From 2010 to 2017, the number of pharmacies with which 340B covered entities have contracted increased from about 1,300 to almost 20,000. The 340B Drug Pricing Program is administered by the Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services (HHS).

The GAO report describes:
1) financial arrangements selected covered entities have with contract pharmacies;
2) the extent that selected covered entities provide discounts on 340B drugs dispensed by contract pharmacies to low-income, uninsured patients; and
3) HRSA's efforts to ensure compliance with 340B Program requirements at contract pharmacies.

Among the report's seven recommendations for improving oversight are that HRSA audits assess for duplicate discounts in Medicaid managed care, and that HRSA require information on how entities determined the scope of noncompliance and evidence of corrective action before closing audits.

Read GAO recommendations.
Read full report.

Posted July 3, 2018