Hospitals Slam Proposal to Deepen Medicare Payment Cuts for 340B Drugs

Hospitals Slam Proposal to Deepen Medicare Payment Cuts for 340B Drugs

National hospital associations slammed the Trump administration’s proposal Tuesday to deepen Medicare Part B drug reimbursement cuts for 340B hospitals, saying the move would defy congressional intent and threaten patient care during the COVID-19 pandemic.

Administrator Seema Verma of the U.S. Centers for Medicare & Medicaid Services (CMS), whose agency wants to cut 340B hospital Part B drug payments by 6.2 percent below the current average sales price (ASP) minus 22.5 percent rate, calls it “part of [the President Trump’s] commitment to lowering drug prices.” CMS and the administration say reducing 340B hospitals’ Part B drug payments reduces Medicare beneficiaries’ out-of-pocket drug costs, which are pegged to the hospital payments. Hospitals argue that patients are not benefiting since most already have their co-pays waived and the payments are offset with higher payments in other parts of the Medicare system.


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