With the Inflation Reduction Act (IRA) and Medicare Fair Price (MFP) changes rolling out, two new data systems are taking center stage: Beacon and the Manufacturer Transaction Facilitator (MTF).
Both exist to track drug pricing and reimbursement accuracy, but they operate in different spaces of the same ecosystem.
Understanding how Beacon and MTF work (and how they connect) is essential for covered entities, pharmacies, and health systems preparing for January 1.
1. What Is Beacon?
Beacon is HRSA’s 340B data validation and rebate submission portal.
It serves as the clearinghouse for covered entities and their TPAs to submit prescription-level data to manufacturers in order to claim 340B discounts or rebates.
Beacon’s purpose:
- Validates that each prescription qualifies under 340B
- Ensures manufacturers are not being double-discounted
- Creates an audit trail for HRSA and manufacturers
- Enables direct rebate submissions for covered-entity claims
Who uses Beacon:
- Covered Entities
- TPAs (third-party administrators)
- Consulting Partners
Think of Beacon as: the compliance and data-integrity checkpoint for 340B transactions.
2. What Is MTF?
The Manufacturer Transaction Facilitator (MTF) is a CMS-designated intermediary for the Medicare Fair Price (MFP) program.
It’s the bridge between manufacturers, plan sponsors, and dispensing pharmacies, ensuring that negotiated MFP rebates are paid correctly once claims are processed.
MTF’s purpose:
- Tracks every MFP-eligible drug dispensed under Medicare
- Routes reimbursement data between plans, manufacturers, and pharmacies
- Calculates and distributes rebate payments to the dispensing entity
- Provides visibility to CMS on payment status and reconciliation
Who uses MTF:
- Manufacturers
- Plan sponsors / PBMs
- Retail and independent pharmacies
- Covered entities that operate their own pharmacy
Think of MTF as: the financial facilitator ensuring everyone gets paid correctly under the new rebate model.
3. Beacon vs MTF: How They Work Together
| Category |
Beacon (HRSA) |
MTF (CMS) |
| Primary Focus |
340B eligibility validation and rebate submission |
Medicare Fair Price rebate facilitation |
| Administered By |
HRSA / OASH / 340B Office |
CMS / CMMI / IRA Implementation Team |
| Used By |
Covered Entities, TPAs, contract pharmacies |
Manufacturers, PBMs, dispensing pharmacies |
| Core Function |
Verifies 340B claim status and prevents duplicate discounts |
Calculates and routes rebate payments for MFP drugs |
| Data Flow Timing |
Post-dispense submission by CEs or TPAs |
Post-adjudication via plan sponsors → MTF |
| Output |
Validated claim files and rebate eligibility records |
Manufacturer rebate payments and CMS reporting |
| Connection Point |
Beacon data feeds can inform MTF eligibility verification |
MTF uses Beacon validation to avoid duplicate rebates |
In short:
- Beacon confirms eligibility and supports compliance.
- MTF facilitates payment and ensures the rebate reaches the dispensing pharmacy.
Both systems are required to make the new rebate model function correctly—but they serve different masters: HRSA vs CMS.
4. What This Means for Covered Entities
If your organization owns or partners with a retail or outpatient pharmacy, you’ll be impacted by both systems—directly or indirectly.
Here’s what to expect:
- Your TPA and/or consultant will continue submitting 340B claims to Beacon.
- Your pharmacy (or partner) will enroll and transmit dispensing data through MTF.
- Accurate coordination between Beacon and MTF is essential to prevent duplicate discounts and ensure rebate reimbursement flows back correctly.
This is where many covered entities will feel pressure—aligning internal data, timing, and claim identifiers between the two platforms.
Key Takeaway
Beacon and MTF aren’t competing systems—they’re complementary pillars of the new rebate and compliance framework.
The success of your 340B program after January 1 will depend on how well your organization connects the two.
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