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340B Funding At Risk in CMS Rule

Wednesday, July 26, 2017   (0 Comments)
Posted by: Susan Stout
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340B funding at risk in CMS proposed rule

The Centers for Medicare and Medicaid Services (CMS) on July 13 released its fiscal year 2018 proposed rule for the hospital outpatient prospective payment system. It includes a provision that specifically targets safety net hospitals that operate using the 340B drug purchasing program.    

While current payments under the program are based on the average sales price (ASP) index plus 6 percent, CMS proposes to reduce the payment to ASP minus 22.5 percent. This amounts to a 28.5 percent payment reduction. Both the Minnesota Hospital Association and the American Hospital Association will be focusing on this issue, among others, in comments to CMS on the proposed rule, which are due by Sept. 11.   

In addition, the U.S. House Energy and Commerce Subcommittee on Oversight and Investigations held hearings last week on the 340B program to review the Health Resources and Services Administration’s oversight of the 340B Drug Pricing Program and how the program impacts patients, providers, manufacturers and other stakeholders. The American Hospital Association weighed in with comments supporting the program’s 25-year history of providing patient access and affordability for outpatient drugs, especially for low-income and uninsured patients.    

For more information or to provide further comments, please contact Joe Schindler, vice president of finance, MHA, 651-659-1415, or Ben Peltier, vice president of legal and federal affairs, MHA, 651-603-3513. return to top