Cuts to 340B program went into effect on January 1 – APhA submits compounding comments to FDA. – (866) 348-2889
Disproportionate share hospitals and rural referral centers lost their bid to stop CMS from implementing cuts to a federal drug pricing program that supports health care services for low-income patients. The 340B program provides discounted outpatient drugs to eligible safety-net health care facilities.
Hospital group plaintiffs were seeking an injunction that would prevent slashes to reimbursement rates from taking effect on January 1, 2018, arguing that the cuts would cause irreparable harm by forcing the reduction or elimination of services and programs. U.S. District Court Judge Rudolph Contreras dismissed the case on procedural grounds, leaving open the question of whether CMS has the legal authority to reduce payments to 340B hospitals and opening the door for future court rulings.
The now-enacted CMS regulation reduces payments for 340B drugs paid under Medicare Part B by lowering the reimbursement rate from average sales price (ASP) plus 6% to ASP minus 22.5%—estimated to save pharmaceutical manufacturers $1.6 billion annually. CMS said that the savings will be redistributed to offset health care costs to all Medicare beneficiaries.