GAO Recommends Stronger Oversight of 340B Contract Pharmacies

In a report issued today, the Government Accountability Office recommended that the Health Resources and Services Administration take additional steps to ensure contract pharmacies comply with 340B drug savings program requirements. Requested by Republican leaders of the House Energy and Commerce Committee, the report reviews the use of contract pharmacies in the 340B program. HRSA concurs in the report with GAO recommendations that it issue guidance on preventing duplicate discounts under Medicaid managed care and assess compliance, and issue more specific guidance regarding contract pharmacy oversight. The agency also agreed with a GAO recommendation to issue guidance on the length of time covered entities must look back following an audit to identify the full scope of noncompliance identified during the audit. HRSA disagreed in the report with a GAO recommendation that it require covered entities to register contract pharmacies for each site of the entity for which a contract exists, and with recommendations that audited covered entities provide certain additional information.