Today is the last day for hospitals that have lost their 340B eligibility due to the COVID-19 public health emergency to file paperwork to be reinstated to the drug discount program.
A federal spending bill signed on March 15 included language to help hospitals whose admission patterns have been disrupted by COVID-19 to the point that their Medicare disproportionate share (DSH) adjustment percentages have fallen below the levels needed to remain in 340B.
Hospitals must meet these conditions to be reinstated:
- The hospital must have been terminated from the 340B program due to an inability to meet the statutorily-required disproportionate share adjustment (DSH percentage) during Medicare cost reporting periods beginning October 1, 2019 and ending no later than December 31, 2022.
- The hospital’s termination must have been as a result of actions taken by or other impact on the hospital in response to, or as a result of, the COVID-19 public health emergency (PHE).
- The hospital must have been a covered entity on January 26, 2020 (i.e., the day before the first day of the COVID-19 PHE).
Hospitals must complete and return a three-page attestation form describing “actions taken by or other impact on the hospital in response to or as a result of the COVID-19 PHE that may have impacted the hospital’s ability to meet the applicable required DSH percentage for participation in the 340B program.”
Hospitals already terminated from 340B due to their DSH percentage having fallen due to the COVID-19 pandemic must submit the attestation form by today, April 14 (30 days after the bill was signed into law). Going forward, hospitals must submit the form within 30 days of failing to meet the DSH percentage requirement.
