GAO is studying a new law that enables hospitals to maintain or regain their 340B eligibility despite having fallen below the minimum required Medicare disproportionate share (DSH) adjustment percentage due to COVID 19-related changes in patient mix.

At Request of Senior GOP Lawmakers, GAO Studying Law That Gave Relief to Hospitals Forced Out of 340B Due to COVID-19

The Government Accountability Office (GAO), Congress’s watchdog agency, is conducting a study of a new law that enables hospitals to maintain or regain their 340B eligibility despite having fallen below the minimum required Medicare disproportionate share (DSH) adjustment percentage due to COVID 19-related changes in patient mix, says Michelle Rosenberg, GAO’s Director of Health Care. Sen. Richard Burr (R-N.C.) and Rep. Cathy McMorris Rodgers (R-Wash.) requested the study, Rosenberg says.

Burr is the ranking Republican on the Senate Health, Education, Labor, and Pensions Committee and McMorris Rodgers is the top Republican on the House Energy and Commerce Committee. These committees have direct jurisdiction over the 340B program. The request to GAO could signal renewed interest in oversight and potential changes to the 340B program if the House and Senate flip to Republican control.

GAO is studying a new law that lets hospitals keep or regain their 340B eligibility despite having fallen below the minimum required Medicare disproportionate share (DSH) adjustment percentage due to COVID 19-related changes in patient mix.

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