1. Budget BRB – 340B provision Laws 2016, Ch. 122 extends existing 340B requirements that apply to FQHCs to other 340B covered entities Does not apply to licensed hospitals and outpatient facilities owned or operated by a licensed hospital AHCCCS must report by November 1, 2016 on feasibility and costs of applying to hospitals 1 Reaching across Arizona to provide comprehensive quality health care for those in need

2. 340B Entities 340B entities submit POS and physician administered drug claims – whether or not drugs purchased under 340B program at lesser of: o AAC o 340B ceiling price May also include professional (dispensing) fee 2 Reaching across Arizona to provide comprehensive quality health care for those in need

3. Contracted Pharmacies Pharmacies contracted with 340B entities o May not be paid for drugs dispensed as part of 340B program o Shall be paid for non-340B drugs at regular contracted amounts Necessary to deal with rebate issue – state may not “double dip” 3 Reaching across Arizona to provide comprehensive quality health care for those in need

4. Next Steps AHCCCS cross divisional implementation team MCO workgroup? Dispensing fee discussions CMS approval – 1/1/17? 4 Reaching across Arizona to provide comprehensive quality health care for those in need