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Covered entities now have more ways to acquire 340B discounts
Kalderos is pleased to announce an important update to our newest platform solution, 340B Pay. Based on feedback from the covered entity community, we’re implementing more flexible options for covered entities in how they choose to receive the discounted 340B price at their own pharmacies.
Kalderos 340B Pay is a platform solution that allows manufacturers, covered entities and Medicaid agencies to work together to effectuate discounts compliantly and efficiently. 340B Pay sits at the center of providers, manufacturers and payers, enabling all parties to manage 340B rebates through its tools, Request and Verify.
With our newest update to 340B Pay, covered entities will be able to choose whether to use the rebate model for their own pharmacies, or maintain their existing process of upfront discount and wholesaler chargeback for drugs purchased under 340B. Both options will be available to covered entities when they first sign up for the Kalderos platform. They can also change this setting later.
Kalderos’ Product team is implementing this change in response to provider concerns about a rebate model’s effect on covered entity cash flow. “While our own economic analysis did not find a working capital issue with our rebate model, due to the speed and frequency at which rebates are paid, we empathize with covered entities who are fearful of any changes that may impact working capital during a healthcare and economic crisis,” said Kalderos CEO Jeremy Docken.
Docken added, “We are confident we can make this change and still be effective in preventing most duplicate discounts originating from covered entity-owned pharmacies due to our advanced machine learning processes developed and improved over time since we launched in 2016.”
Under the updated 340B Pay, the rebate model will still be the only way for covered entities to receive 340B prices on applicable products dispensed at their contract pharmacies, which remain the most challenging sites for compliance. With 340B rebate funds from contract pharmacy dispenses flowing directly to covered entities, covered entities will benefit from greater control over program savings, enabling them to better serve patients.
“We truly value the partnership of the covered entity community, including the more than 3,600 we work with today, and are excited to release this change that will give them greater control over their 340B programs,” said Jordan Green, director of product management at Kalderos.
Kalderos has directly communicated this change to HHS and HRSA, as we have done during every stage of developing and launching our Drug Discount Management solutions. These agencies have not identified any compliance concerns with our implementation of the rebate model for either covered entities or contract pharmacies.
Kalderos is dedicated to building unifying technological solutions that serve the needs of all stakeholders. We welcome the feedback we’ve received from covered entities, state Medicaid agencies and manufacturers alike, and look forward to continued collaboration with all partners in the program. Together, we can ensure a strong, sustainable 340B program that puts the needs of patients first.
