ACE Purchasing & Inventory Management 1 — Questions and Answers
Question 1: What is the primary tool for covered entities to purchase 340B drugs at discounted prices?
- Medicaid Drug Rebate System
- Manufacturer Direct Purchasing
- Prime Vendor Program (PVP) (Correct answer)
- CMS Price Benchmark Tool
Correct answer: Prime Vendor Program (PVP)
The Prime Vendor Program (PVP), managed by Apexus, is the main tool used to access additional discounts and ensure compliance.
Question 2: What is the function of a replenishment model in 340B inventory management?
- Estimate yearly demand
- Reduce staff workload
- Track usage and trigger orders based on actual dispensing (Correct answer)
- Standardize patient co-pays
Correct answer: Track usage and trigger orders based on actual dispensing
Replenishment models track dispensed drugs and reorder to maintain accurate 340B inventory levels without diversion.
Question 3: Why is physical inventory reconciliation important in 340B programs?
- To satisfy state board regulations
- To detect over-prescribing by physicians
- To confirm 340B compliance by aligning data and inventory (Correct answer)
- To calculate billing margins
Correct answer: To confirm 340B compliance by aligning data and inventory
It ensures that purchases, dispensing records, and inventory align, preventing diversion and duplicate discounts.
Question 4: Which of the following is an acceptable inventory model for 340B compliance?
- Blended inventory without tracking
- First-in, first-out inventory
- Virtual inventory model with proper tracking (Correct answer)
- Cash-only inventory system
Correct answer: Virtual inventory model with proper tracking
A virtual inventory model separates 340B and non-340B inventory at the data level, maintaining compliance while allowing efficient operations.
Question 5: What documentation is essential for proving 340B purchases?
- Physician credentials
- Medication expiration logs
- Invoices and purchase orders for 340B drugs (Correct answer)
- Patient health surveys
Correct answer: Invoices and purchase orders for 340B drugs
Invoices and purchase orders are critical documentation for tracking and verifying 340B transactions.
Question 6: Why should covered entities avoid stockpiling 340B drugs?
- It increases warehouse maintenance costs
- It delays Medicaid rebates
- It may lead to noncompliance with 340B program requirements (Correct answer)
- It reduces access to contract pharmacies
Correct answer: It may lead to noncompliance with 340B program requirements
Stockpiling can result in program noncompliance by violating intent of usage rules and distorting purchasing data.
Question 7: Which entity negotiates sub-ceiling prices for 340B participants?
- FDA
- HRSA
- Apexus (Correct answer)
- CDC
Correct answer: Apexus
Apexus, as the 340B Prime Vendor, negotiates lower prices below the 340B ceiling price to provide additional savings.
Question 8: What helps prevent diversion in 340B inventory management?
- Unified dispensing with no tracking
- Overordering during price drops
- Maintaining distinct and auditable inventory records (Correct answer)
- Relying on wholesaler tracking alone
Correct answer: Maintaining distinct and auditable inventory records
Clearly defining and maintaining separate tracking of 340B and non-340B drugs is key to avoiding diversion.
Question 9: Which practice supports compliance in purchasing under 340B?
- Purchasing in bulk for all departments
- Ordering only based on lowest price
- Restricting purchases to eligible outpatient services (Correct answer)
- Submitting orders via fax only
Correct answer: Restricting purchases to eligible outpatient services
Limiting purchases to eligible outpatient settings ensures purchases align with patient eligibility requirements.
ACE Purchasing & Inventory Management 1
What is the primary tool for covered entities to purchase 340B drugs at discounted prices?