SAN FRANCISCO, April 27, 2021 /PRNewswire/ -- Chronicled, administrator of the MediLedger Network (the leading blockchain-powered industry network in Life Sciences), today announced the launch of a new working group dedicated to the development of a sustainable industry solution to the problem of Medicaid duplicate discounts against 340B priced drugs. Annual spend under the 340B program has grown by 700% in the last 10 years to $35 Billion, and the number of Contract Pharmacies participating in the 340B program has grown from 1,200 to 28,000 in the same time frame. This has led to an escalating issue of manufacturers paying out Medicaid rebate claims on drugs where a 340B discount was already applied, also known as a duplicate discount. Multiple pharmaceutical manufacturers have now put in place Medicaid claim requirements and/or 340B discount restrictions in an effort to solve the duplicate discounts problem. Healthcare providers are now facing a growing list of unique requirements from different drug manufacturers that seems unsustainable, and could increase administrative burden and decrease drug access to eligible patients.
Launching in May 2021, the MediLedger Medicaid Duplicate Discounts Working Group aims to bring together pharmaceutical manufacturers, 340B covered entities, and state/federal agencies, to establish the business requirements, conceptual design, and proof of concept for an industry wide solution to Medicaid Duplicate Discounts. Working group participation also includes access to easy web access to Chronicled's existing Roster Management Solution. The goal of the working group is to ensure the success and integrity of the Medicaid and 340B discount programs in serving patients in need.
The blockchain-powered MediLedger Network is uniquely suited as the platform for an industry solution to Medicaid duplicate discounts. Blockchain-based solutions can actually enforce rules between companies. So new policies, standards and rules established in working groups can actually be developed into commercial solutions run directly between trading partners - no 3rd parties involved. Data shared with trading partners and rules on the MediLedger network can't be changed by any single participant, creating trust even between competitors.
The Medicaid Duplicate Discounts Working Group will be the 4th working group launched by Chronicled in collaboration with key stakeholders in the life sciences industry. Previous & ongoing working groups include:
- The MediLedger Supply Chain Working Group -This group was formed in 2017 around the requirements set forth in the Drug Supply Chain Security Act (DSCSA). From this group, the first commercial blockchain solution in the pharma industry was launched on the MediLedger Network in 2019 for Product Verification of saleable returns. Today, 95% of drugs in the US can be verified through the MediLedger Network.
- The MediLedger Revenue Management Working Group - This group was formed in 2018 to address challenges with intra-company transactions in the pharma supply chain like rebates, chargebacks, and other admin fees. From this group, the Contracts & Chargebacks solution became available in 2020 to eliminate chargeback errors and disputes between manufacturers, wholesalers and group purchasing organizations.
- The MediLedger FDA DSCSA Pilot Working Group - This group formed in 2019 around the FDA's call for POCs for an industry wide track-and-trace solution. This was and still is the largest industry collaboration around a blockchain-based proof of concept for track and trace of prescription drugs with 25 companies participating. The final report was accepted and published by the FDA (link to FDA site).
Chronicled CEO, Susanne Somerville, says "Industry collaboration takes a whole new meaning when discussion can turn into real solutions between companies. We are excited to help usher in a new era of transparency and trust around the Medicaid & 340B program, and help the industry more effectively serve patients in need across the country."
To learn more about Chronicled and the MediLedger Network, visit www.chronicled.com. To request information about the Medicaid Duplicate Discount Working Group, including requirements for participation, email [email protected]
Chronicled enables automation, trust, and automatic settlement for intra-company transactions in the Life Sciences and Healthcare industry. Through the industry leading blockchain-powered MediLedger Network, Chronicled offers trading partners a new way to manage revenue, automate manual processes, and eliminate revenue leakage, while ensuring pricing accuracy and efficiency for health care providers and dispensers. Chronicled's current core revenue management solution, Contracts & Chargebacks, eliminates pharmaceutical chargeback errors and disputes between manufacturers, wholesalers and group purchasing organizations.
Based in San Francisco, Chronicled was founded with a unique blend of pharmaceutical industry and technology expertise. Their mission is to streamline trading partner interactions across the healthcare industry to better serve providers and patients.