In May 2012, the VA Office of General Counsel (OGC) Public Law (P.L.) 102-585, Sect. 603, Policy Group convened to provide additional guidance to manufacturers of covered drugs:

1.  Is the Immigration and Customs Enforcement (ICE) Health Service Corps (formerly the Division of Immigration Health Services) within the Department of Homeland Security (DHS) eligible to access Federal Ceiling Prices (FCPs).

After reviewing information from DHS/ICE, April 25, 2012 VA’s General Counsel issued a memo to VA’s Office of Acquisition, Logistics, and Construction, stating that ICE’s Health Service Corps is not entitled to receive FCPs on covered drug orders.  They are no longer considered to be a functional element of the Public Health Service (PHS or HRSA), one of the statutory beneficiaries of FCPs.

2.  How will TRICARE mandatory rebates, paid in FY2012 for 2008 and 2009 TRICARE Retail Pharmacy Network (TRRx or T-Pharm) utilization impact 2012 annual non-FAMP reporting?

Based on VA’s October 2009 “Dear Manufacturer Letter” and 2009 posted “FAQ” answers, VA’s P.L. 102-585, Sect. 603 Policy Group has concluded that TRRx utilization data from all calendar quarters of 2008 and Q1 & Q2 for FY 2009 should have no place in 2012 non-FAMP computations.  In order words, this old TRRx utilization need not be excluded from 2012 non-FAMP eligible sales totals.

For questions or additional information please contact the FSS Help Desk:  (p) (708) 786-7737, (e) helpdesk.ammhinfss@va.gov.