Morning Briefing
Summaries of health policy coverage from major news organizations
Fate Of 340B Drug Discount Program In Spending Bill Pits Hospitals, Pharma
Stat: Hospital And Pharma Lobbyists Spar Over Drug-Discount Program Before Time Runs Out
Hospital and pharmaceutical industry lobbyists are facing off as lawmakers scramble to finalize a year-end spending deal that could include changes to the controversial 340B program. Hospitals want Congress to use the package to reverse a $1.6 billion cut to the program that the Trump administration finalized this fall, and which is set to take effect Jan. 1. Drugmakers don’t. And if the package does end or delay the cut, they want hospitals to disclose far more information about the discounts they get under the program, according to a half dozen lobbyists from both industries and several congressional staffers. (Mershon, 12/14)
The Hill: Lawmakers Battle Trump, PhRMA On Discount Drug Rule
Lawmakers in both parties are seeking to block the Trump administration’s changes to a Medicare drug discount program, arguing it would have a negative impact on hospitals that serve low-income people. A rule from the Centers for Medicare and Medicaid Services (CMS) slated to go into effect on Jan. 1 would result in $1.6 billion in cuts to “safety net” hospitals that serve a significant number of low-income patients under the so-called 340B drug discount program. (Hellmann, 12/14)
Modern Healthcare: California, North Carolina And New York Hit Hardest By 340B Cuts
The CMS' planned $1.6 billion in Medicare cuts to 340B hospitals across the nation will disproportionately impact providers in California, North Carolina and New York, according to a new study. Slashing the 340B drug discount program, which is intended to lower operating costs for hospitals to give its low-income patients access to drugs, would result in large funding cuts across California, North Carolina and New York hospitals, ranging from $62 million to $126 million, researchers for consultancy Avalere found. Overall, six states will see drug payment cuts of more than $50 million next year. (Kacik, 12/13)
Stat: ‘Big Black Box Called PBMs’ Draws Attention From Lawmakers Trying To Solve Drug Prices
As lawmakers are puzzling over the question of why so many patients are paying so much money for prescription drugs — and what to do about it — Republicans are focusing increasing scrutiny on the middlemen: pharmacy benefit managers. “What I’m seeing, and what the public sees, is that we’ve got this big black box called PBMs,” said Rep. Morgan Griffith, a Virginia Republican, at a Wednesday House subcommittee hearing. (Swetlitz, 12/13)
And in other pharmaceutical news —
KCUR: Missouri And Other States Face Potentially Costly Dilemma Over Treating Inmates With Hep C
According to the Centers for Disease Control and Prevention, the most common way inmates get Hep C is by sharing equipment used for injecting drugs, tattooing and piercing with other people who are already infected. Civil liberties groups in Missouri and at least seven other states are now suing to get more inmates treated with new-generation Hep C drugs that are highly effective but also very costly. ... In 2016, around 5,000 Missouri inmates had Hep C. The data show that no more than 14 received the drugs. (Smith, 12/13)
California Healthline: Pharmacy Costs Continue To Soar For California’s Public Employee Health System
Spending on prescription drugs by the California Public Employees’ Retirement System (CalPERS) continues to climb, putting pressure on administrators to deploy more cost-cutting measures at the nation’s largest public pension system. The agency’s health benefits committee will discuss the challenge of rising drug costs at its regular meeting on Tuesday, and it will convene a special panel in January to discuss ways to address the problem. (Bartolone, 12/14)
