82_FR_12550 82 FR 12508 - 340B Drug Pricing Program Ceiling Price and Manufacturer Civil Monetary Penalties; Delay of Effective Date

82 FR 12508 - 340B Drug Pricing Program Ceiling Price and Manufacturer Civil Monetary Penalties; Delay of Effective Date

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Federal Register Volume 82, Issue 42 (March 6, 2017)

Page Range12508-12509
FR Document2017-04337

In accordance with the memorandum of January 20, 2017, from the Assistant to the President and Chief of Staff, entitled ``Regulatory Freeze Pending Review,'' this action temporarily delays for 60 days from the date of the memorandum the effective date of the final rule titled ``340B Drug Pricing Program Ceiling Price and Manufacturer Civil Monetary Penalties Regulation,'' published in the January 5, 2017, Federal Register. This document announces that the effective date is delayed until March 21, 2017.

Federal Register, Volume 82 Issue 42 (Monday, March 6, 2017)
[Federal Register Volume 82, Number 42 (Monday, March 6, 2017)]
[Rules and Regulations]
[Pages 12508-12509]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-04337]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

42 CFR Part 10

RIN 0906-AA89


340B Drug Pricing Program Ceiling Price and Manufacturer Civil 
Monetary Penalties; Delay of Effective Date

AGENCY: Health Resources and Services Administration (HRSA), HHS.

ACTION: Final rule; delay of effective date.

-----------------------------------------------------------------------

SUMMARY: In accordance with the memorandum of January 20, 2017, from 
the Assistant to the President and Chief of Staff, entitled 
``Regulatory Freeze Pending Review,'' this action temporarily delays 
for 60 days from the date of the memorandum the effective date of the 
final rule titled ``340B Drug Pricing Program Ceiling Price and 
Manufacturer Civil Monetary Penalties Regulation,'' published in the 
January 5, 2017, Federal Register. This document announces that the 
effective date is delayed until March 21, 2017.

DATES: Effective date: This regulation is effective March 3, 2017. The 
effective date of the final rule published in the January 5, 2017, 
Federal Register (82 FR 1210), is delayed until March 21, 2017. 
Compliance date: HHS recognizes that the effective date falls in the 
middle of a quarter. As such, HHS plans to begin enforcing the 
requirements of this final rule at the start of the next quarter, which 
begins April 1, 2017.

FOR FURTHER INFORMATION CONTACT: CAPT Krista Pedley, Director, Office 
of Pharmacy Affairs (OPA), Healthcare Systems Bureau (HSB), HRSA, 5600 
Fishers Lane, Mail Stop 08W05A, Rockville, MD 20857, or by telephone at 
301-594-4353.

SUPPLEMENTARY INFORMATION: The January 20, 2017 memorandum from the 
Assistant to the President and Chief of Staff, titled ``Regulatory 
Freeze Pending Review,'' published in the Federal

[[Page 12509]]

Register on January 24, 2017 (82 FR 8346) instructed federal agencies 
to delay the effective date of rules published in the Federal Register, 
but which have not yet taken effect, for a period of 60 days from the 
date of the memorandum. The final rule sets forth the calculation of 
the 340B ceiling price and application of civil monetary penalties 
(CMPs). The effective date of that rule, which would have been March 6, 
2017, is now March 21, 2017. The temporary delay in the effective date 
of this final rule is necessary to give Department officials the 
opportunity for further review and consideration of new regulations, 
consistent with the Assistant to the President and Chief of Staff's 
memorandum.

    Dated: February 23, 2017.
James Macrae,
Acting Administrator, Health Resources and Services Administration.
    Approved: March 1, 2017.
Thomas E. Price,
Secretary, Department of Health and Human Services.
[FR Doc. 2017-04337 Filed 3-2-17; 11:15 am]
BILLING CODE 4160-15-P



                                                  12508               Federal Register / Vol. 82, No. 42 / Monday, March 6, 2017 / Rules and Regulations

                                                    (f) Inter-agency or intra-agency                      days (excluding Saturdays, Sundays,                      (3) A court has determined that
                                                  memoranda or letters that would not be                  and legal holidays) of the date the                   exceptional circumstances exist and
                                                  available by law to a party other than an               appeal is received. If on appeal the                  excused the Commission from
                                                  agency in litigation with the agency.                   adverse determination is upheld, the                  responding by court order.
                                                  This exemption shall not apply to                       Commission will notify the requester of                  (f) The Commission may, however,
                                                  records created 25 years or more before                 the availability of dispute resolution                charge fees for review, and in some
                                                  the date on which the records were                      services from the Office of Government                cases duplication, for a partial grant of
                                                  requested.                                              Information Services as a voluntary,                  a request while it reviews records that
                                                  *      *     *    *     *                               non-exclusive alternative to litigation               may be exempt and may be responsive
                                                  ■ 5. Amend § 3004.12 by revising                        and the provisions for judicial review of             to the request, so long as the partial
                                                  paragraph (c) to read as follows:                       that determination pursuant to 5 U.S.C.               grant is made within the applicable time
                                                                                                          552(c).                                               limits.
                                                  § 3004.12   Reading room.                               *     *     *     *     *                             [FR Doc. 2017–04308 Filed 3–3–17; 8:45 am]
                                                  *     *     *     *     *                               ■ 9. Revise § 3004.45 to read as follows:             BILLING CODE 7710–FW–P
                                                    (c) The Commission shall make
                                                  available, in an electronic and physical                § 3004.45    Extension of response time limit.
                                                  reading room, records previously                          (a) The Commission may extend the                   DEPARTMENT OF HEALTH AND
                                                  released under FOIA and which the                       time limit for a response to a request or             HUMAN SERVICES
                                                  Commission determines are or are likely                 appeal for up to 10 business days due
                                                  to become of significant public interest,               to unusual circumstances, as specified                42 CFR Part 10
                                                  including agency records that have been                 in 5 U.S.C. 552(a)(6)(B)(iii). In such a
                                                  requested three or more times.                          case, the Commission will notify the                  RIN 0906–AA89
                                                  ■ 6. Amend § 3004.13 by revising                        requester in writing of the unusual
                                                                                                                                                                340B Drug Pricing Program Ceiling
                                                  paragraph (a) to read as follows:                       circumstance causing the extension and
                                                                                                          the date by which the Commission                      Price and Manufacturer Civil Monetary
                                                  § 3004.13 Notice and publication of public              estimates that the request can be                     Penalties; Delay of Effective Date
                                                  information.                                            processed.                                            AGENCY:  Health Resources and Services
                                                    (a) Decisions, advisory opinions,                       (b) If an extension will exceed 10                  Administration (HRSA), HHS.
                                                  orders, public reports, and agency                      business days, the Commission will:                   ACTION: Final rule; delay of effective
                                                  records that have been requested three                    (1) Provide the requester with an
                                                  or more times will be made available to                                                                       date.
                                                                                                          opportunity to limit the scope of the
                                                  the public by posting on the                            request or to arrange an alternative                  SUMMARY:    In accordance with the
                                                  Commission’s Web site at http://                        timeframe for processing the request or               memorandum of January 20, 2017, from
                                                  www.prc.gov.                                            a modified request. The applicable time               the Assistant to the President and Chief
                                                  *     *    *     *     *                                limits are not tolled while the                       of Staff, entitled ‘‘Regulatory Freeze
                                                  ■ 7. Amend § 3004.43 by revising                        Commission waits for a response from                  Pending Review,’’ this action
                                                  paragraph (a) to read as follows:                       the requester under this subsection; and              temporarily delays for 60 days from the
                                                                                                            (2) Make its FOIA Public Liaison                    date of the memorandum the effective
                                                  § 3004.43   Response to requests.                       available to the requester and apprise                date of the final rule titled ‘‘340B Drug
                                                     (a) Within 20 days (excluding                        the requester of their right to seek                  Pricing Program Ceiling Price and
                                                  Saturdays, Sundays, and legal holidays)                 dispute resolution services from the                  Manufacturer Civil Monetary Penalties
                                                  after receipt of a request for a                        Office of Government Information                      Regulation,’’ published in the January 5,
                                                  Commission record, the Secretary or                     Services.                                             2017, Federal Register. This document
                                                  Assistant Secretary will notify the                     ■ 10. Amend § 3004.52 by revising                     announces that the effective date is
                                                  requester of its determination to grant or              paragraph (e) and adding paragraph (f)                delayed until March 21, 2017.
                                                  deny the request and the right to seek                  to read as follows:                                   DATES: Effective date: This regulation is
                                                  assistance from the Commission’s FOIA
                                                                                                          § 3004.52    Fees—general provisions.                 effective March 3, 2017. The effective
                                                  Public Liaison. In the case of an adverse
                                                                                                                                                                date of the final rule published in the
                                                  determination, the Commission will                      *      *     *    *     *
                                                                                                                                                                January 5, 2017, Federal Register (82 FR
                                                  notify the requester of their right to                     (e) No requester will be charged a fee
                                                                                                                                                                1210), is delayed until March 21, 2017.
                                                  appeal and right to seek dispute                        after any search or response which
                                                  resolution services from the                                                                                  Compliance date: HHS recognizes that
                                                                                                          occurs after the applicable time limits as
                                                  Commission’s FOIA Public Liaison or                                                                           the effective date falls in the middle of
                                                                                                          described in §§ 3004.43 and 3004.44,
                                                  the Office of Government Information                                                                          a quarter. As such, HHS plans to begin
                                                                                                          unless:
                                                  Services.                                                  (1) The Commission extends the time                enforcing the requirements of this final
                                                                                                          limit for its response due to unusual                 rule at the start of the next quarter,
                                                  *      *    *      *    *                                                                                     which begins April 1, 2017.
                                                  ■ 8. Amend § 3004.44 by revising                        circumstances, pursuant to § 3004.45(a),
                                                                                                          and the Commission completes its                      FOR FURTHER INFORMATION CONTACT:
                                                  paragraphs (b) and (c)(1) to read as                                                                          CAPT Krista Pedley, Director, Office of
                                                  follows:                                                response within the extension of time
                                                                                                          provided under that section; or                       Pharmacy Affairs (OPA), Healthcare
                                                  § 3004.44   Appeals.                                       (2) The Commission extends the time                Systems Bureau (HSB), HRSA, 5600
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                                                  *     *     *     *     *                               limit for its response due to unusual                 Fishers Lane, Mail Stop 08W05A,
                                                    (b) A requester who seeks to appeal                   circumstances and more than 5,000                     Rockville, MD 20857, or by telephone at
                                                  any adverse determination must file an                  pages are necessary to respond to the                 301–594–4353.
                                                  appeal with the Commission within 1                     request and the Commission has                        SUPPLEMENTARY INFORMATION: The
                                                  year of the date of the Commission’s                    discussed with the requester how they                 January 20, 2017 memorandum from the
                                                  response.                                               could effectively limit the scope of the              Assistant to the President and Chief of
                                                    (c)(1) The Commission will grant or                   request or made at least three good faith             Staff, titled ‘‘Regulatory Freeze Pending
                                                  deny the appeal in writing within 20                    attempts to do so; or                                 Review,’’ published in the Federal


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                                                                      Federal Register / Vol. 82, No. 42 / Monday, March 6, 2017 / Rules and Regulations                                         12509

                                                  Register on January 24, 2017 (82 FR                     FOR FURTHER INFORMATION CONTACT:                      comment procedures in the Medicaid
                                                  8346) instructed federal agencies to                    Elmer Barksdale, 410–786–1943, Gaysha                 and Children’s Health Insurance
                                                  delay the effective date of rules                       Brooks, 410–409–3837, or Annette                      Program (CHIP) Programs; Medicaid
                                                  published in the Federal Register, but                  Brewer, 410–786–6580.                                 Managed Care, CHIP Delivered in
                                                  which have not yet taken effect, for a                  SUPPLEMENTARY INFORMATION:                            Managed Care, and Revisions Related to
                                                  period of 60 days from the date of the                                                                        Third Party Liability final rule. As a
                                                  memorandum. The final rule sets forth                   I. Background                                         result, the corrections made through this
                                                  the calculation of the 340B ceiling price                  In FR Doc. 2016–31650 (82 FR 37                    correcting document are intended to
                                                  and application of civil monetary                       through 40), the correcting amendment                 ensure that the Medicaid and Children’s
                                                  penalties (CMPs). The effective date of                 entitled, ‘‘Medicaid and Children’s                   Health Insurance Program (CHIP)
                                                  that rule, which would have been March                  Health Insurance Program (CHIP)                       Programs; Medicaid Managed Care,
                                                  6, 2017, is now March 21, 2017. The                     Programs; Medicaid Managed Care,                      CHIP Delivered in Managed Care, and
                                                  temporary delay in the effective date of                CHIP Delivered in Managed Care, and                   Revisions Related to Third Party
                                                  this final rule is necessary to give                    Revisions Related to Third Party                      Liability final rule accurately reflects
                                                  Department officials the opportunity for                Liability; Corrections’’ there were                   the policies adopted in that rule.
                                                  further review and consideration of new                 technical errors that are identified and                 Even if this were a rulemaking to
                                                  regulations, consistent with the                        corrected in this correcting document.                which the notice and comment and
                                                  Assistant to the President and Chief of                 These corrections are applicable                      delayed effective date requirements
                                                  Staff’s memorandum.                                     immediately.                                          applied, we find that there is good cause
                                                                                                                                                                to waive such requirements.
                                                    Dated: February 23, 2017.                             II. Summary of Errors in Regulation
                                                                                                                                                                Undertaking further notice and
                                                  James Macrae,                                           Text
                                                                                                                                                                comment procedures to incorporate the
                                                  Acting Administrator, Health Resources and                 On page 39, we made technical errors               corrections in this document into the
                                                  Services Administration.                                in the amendatory instructions                        Medicaid and Children’s Health
                                                    Approved: March 1, 2017.                              amending the regulation text of                       Insurance Program (CHIP) Programs;
                                                  Thomas E. Price,                                        § 438.358(c)(3) and (4). Therefore, the               Medicaid Managed Care, CHIP
                                                  Secretary, Department of Health and Human               Office of the Federal Register was not                Delivered in Managed Care, and
                                                  Services.                                               able to properly correct the regulations              Revisions Related to Third Party
                                                  [FR Doc. 2017–04337 Filed 3–2–17; 11:15 am]             text as intended.                                     Liability final rule or delaying the
                                                  BILLING CODE 4160–15–P
                                                                                                          III. Waiver of Proposed Rulemaking                    effective date of the corrections would
                                                                                                          and Delay in Effective Date                           be contrary to the public interest
                                                                                                                                                                because it could result in a period of
                                                  DEPARTMENT OF HEALTH AND                                   Under 5 U.S.C. 553(b) of the
                                                                                                                                                                confusion about the applicability of the
                                                  HUMAN SERVICES                                          Administrative Procedure Act (APA),
                                                                                                                                                                rules while those procedures are
                                                                                                          the agency is required to publish a
                                                                                                                                                                pending. Further, such procedures
                                                  Centers for Medicare & Medicaid                         notice of the proposed rule in the
                                                                                                                                                                would be unnecessary, because the
                                                  Services                                                Federal Register before the provisions
                                                                                                                                                                corrections in this document do not
                                                                                                          of a rule take effect. In addition, section
                                                                                                                                                                make substantive changes in the
                                                  42 CFR Part 438                                         553(d) of the APA mandates a 30-day
                                                                                                                                                                underlying policies but are limited to
                                                                                                          delay in effective date after issuance or
                                                  [CMS–2390–F4]                                                                                                 technical errors. This correcting
                                                                                                          publication of a rule. Sections 553(b)(B)
                                                  RIN–0938–AS25                                                                                                 document is intended solely to ensure
                                                                                                          and 553(d)(3) of the APA provide for
                                                                                                                                                                that the Medicaid and Children’s Health
                                                                                                          exceptions from the APA requirement
                                                  Medicaid and Children’s Health                                                                                Insurance Program (CHIP) Programs;
                                                                                                          for notice and comment, and delay in
                                                  Insurance Program (CHIP) Programs;                                                                            Medicaid Managed Care, CHIP
                                                                                                          effective date requirements. Section
                                                  Medicaid Managed Care, CHIP                                                                                   Delivered in Managed Care, and
                                                                                                          553(b)(B) of the APA authorizes an
                                                  Delivered in Managed Care, and                                                                                Revisions Related to Third Party
                                                                                                          agency to dispense with normal notice
                                                  Revisions Related to Third Party                                                                              Liability final rule accurately reflects
                                                                                                          and comment rulemaking procedures
                                                  Liability; Corrections                                                                                        the final policy determinations that
                                                                                                          for good cause if the agency makes a
                                                                                                                                                                were set forth in the overall rulemaking
                                                  AGENCY:  Centers for Medicare &                         finding that the notice and comment
                                                                                                                                                                record. For these reasons, we believe
                                                  Medicaid Services (CMS), HHS.                           process is impracticable, unnecessary,
                                                                                                                                                                there is good cause to waive the
                                                  ACTION: Final rule; correcting                          or contrary to the public interest; and
                                                                                                                                                                requirements for notice and comment
                                                  amendment.                                              includes a statement of the finding and
                                                                                                                                                                and delay in effective date.
                                                                                                          the reasons for it in the notice.
                                                  SUMMARY:   This document corrects                          In our view, this correcting document              List of Subjects in 42 CFR Part 438
                                                  technical errors that appeared in the                   does not constitute a rulemaking that                   Grant programs—health, Medicaid,
                                                  correcting amendment published in the                   would be subject to these requirements.               Reporting and recordkeeping
                                                  January 3, 2017 Federal Register (82 FR                 This document merely corrects                         requirements.
                                                  37 through 40) entitled, ‘‘Medicaid and                 technical errors in the Medicaid and
                                                  Children’s Health Insurance Program                     Children’s Health Insurance Program                   Correction
                                                  (CHIP) Programs; Medicaid Managed                       (CHIP) Programs; Medicaid Managed                       In FR Doc. 2016–31650, published on
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                                                  Care, CHIP Delivered in Managed Care,                   Care, CHIP Delivered in Managed Care,                 January 3, 2017 (82 FR 37), make the
                                                  and Revisions Related to Third Party                    and Revisions Related to Third Party                  following correction:
                                                  Liability; Corrections.’’                               Liability; Corrections correcting                       On page 39, in the third column,
                                                  DATES: Effective Date: This correcting                  amendment. The corrections contained                  remove amendatory instructions 8 and 9
                                                  document is effective March 3, 2017.                    in this document are consistent with,                 and their amendments to § 438.358.
                                                    Applicability Date: The corrections                   and do not make substantive changes to,                 Accordingly, 42 CFR chapter IV is
                                                  indicated in this document are                          the policies and payment methodologies                corrected by making the following
                                                  applicable beginning immediately.                       that were adopted subject to notice and               correcting amendments to part 438:


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Document Created: 2017-03-04 00:06:54
Document Modified: 2017-03-04 00:06:54
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule; delay of effective date.
DatesEffective date: This regulation is effective March 3, 2017. The effective date of the final rule published in the January 5, 2017, Federal Register (82 FR 1210), is delayed until March 21, 2017. Compliance date: HHS recognizes that the effective date falls in the middle of a quarter. As such, HHS plans to begin enforcing the requirements of this final rule at the start of the next quarter, which begins April 1, 2017.
ContactCAPT Krista Pedley, Director, Office of Pharmacy Affairs (OPA), Healthcare Systems Bureau (HSB), HRSA, 5600 Fishers Lane, Mail Stop 08W05A, Rockville, MD 20857, or by telephone at 301-594-4353.
FR Citation82 FR 12508 
RIN Number0906-AA89

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