MedicaidAdministrativeLow impact
MSA 18-14
Michigan Medicaid - MDHHS·MI · Pharmacy·Provider Bulletin
Effective date
Oct 1, 2015
We identified it
Jun 20, 2026
Summary
Michigan hospitals participating in Medicaid 340B programs can now adjust their drug costs from actual acquisition cost to normal and customary charges during final settlement processes. This change only affects the settlement adjustment process and does not impact day-to-day drug billing procedures.
Action Required
Michigan hospitals participating in Medicaid Fee-for-Service 340B program: Review internal settlement processes to determine if adjusting 340B drug costs from actual acquisition cost to normal and customary charges would be beneficial. Prepare documentation to confirm reasonableness of reported charges if choosing to participate. Continue billing 340B actual acquisition cost and applicable modifiers for all claims - no changes to daily billing practices required.