ACE ACE Contract Pharmacy & Third Party Administration 2

Question 1

What does TPA stand for in the context of the 340B program?

Accepted Answer

Third Party Administrator

Answer

TPA stands for Third Party Administrator, a vendor that manages 340B data and operations — such as split billing or claims adjudication — on behalf of a covered entity.

Question 2

What is a key service that a Third Party Administrator (TPA) typically provides to 340B covered entities?

Accepted Answer

Managing split-billing software to identify 340B-eligible claims

Answer

TPAs commonly manage split-billing software systems that identify which pharmacy claims qualify for 340B pricing, separating them from non-340B claims.

Question 3

When a TPA commits an error that results in a 340B violation, who is held responsible by HRSA?

Accepted Answer

The covered entity, which retains compliance responsibility

Answer

HRSA holds the covered entity responsible for all 340B compliance, regardless of TPA errors, because the entity cannot transfer its statutory obligations to a vendor.

Question 4

Which of the following should be included in a contract between a covered entity and its TPA?

Accepted Answer

Data ownership, audit rights, breach notification procedures, and performance standards

Answer

A sound TPA contract should address data ownership, the covered entity's right to audit, breach notification timelines, and service level performance standards.

Question 5

How should a covered entity evaluate ongoing TPA performance?

Accepted Answer

Through periodic audits, performance reviews, and reconciliation of 340B savings data

Answer

Covered entities should periodically audit TPA data, review performance against contract benchmarks, and reconcile reported savings to ensure accuracy and compliance.

(ACE) Apexus Certified Expert Practice Test

(ACE) Apexus Certified Expert Practice Test

ACE ACE Contract Pharmacy & Third Party Administration 2