Trump Administration’s Plan To Cut Hospital Payments To Curb Drug Costs Won’t Really Effect Patients Or Pharma
“If you look at the static effect, it has zero effect on pharmaceutical revenues, because they give the discounts anyway. All of the savings get yanked from hospital revenues and given back to Medicare and beneficiaries,” Peter Bach, the director of Memorial Sloan Kettering’s Center for Health Policy and Outcomes.
Stat:
Trump Officials Say A New Plan Will Cut Drug Prices. It’s Not That Simple
The proposal takes aim at a controversial drug discount program, known as the 340B program, which is designed to boost revenues for hospitals that primarily serve low-income patients. The program requires drug makers to offer those hospitals sizable discounts on certain drugs. The hospital can then bill Medicare and other insurers at regular reimbursement rates when patients take the drugs, banking the extra savings to spend elsewhere. (Mershon, 7/14)
Atlanta Journal-Constitution:
Drug Program That Aids Atlanta Hospitals Draws Attention Of Congress
The 340B program requires drug makers participating in the Medicaid program to give deep discounts on outpatient drugs to hospitals that treat low-income patients. ... But the use of the program has exploded in recent years, with many hospitals that provide little charity care to uninsured patients among the heavy users. (Teegardin, 7/14)
Modern Healthcare:
Hospitals Question Feds' Proposed $900 Million IOU Tied To 340B Cuts
Hospital officials say they're worried the CMS won't fairly distribute savings the agency says would be generated by a $900 million cut to the 340B drug discount program. Last week, the CMS proposed paying hospitals 22.5% less than the average sales price for drugs acquired under the federal program, which aims to reduce operating costs for hospitals that see a disproportionate share of low income patients. (Dickson, 7/18)
Kaiser Health News:
Congress Squares Off Over Drug Pricing And A Controversial Drug Discount Program
House Democrats are calling foul on Republican assertions that cuts to a little-known discount drug program will eventually reduce skyrocketing drug prices. At a hearing Tuesday, Rep. Diana DeGette (D-Colo.) said high drug prices should be investigated separately from the focus on oversight of the drug discount program, known as 340B. “I think we need an investigation, a robust investigation, and a series of hearings that explore in-depth the reasons for exorbitant cost of drugs and why the prices continue to rise,” DeGette said. (Tribble, 7/18)
