Morning Briefing
Summaries of health policy coverage from major news organizations
Groups Sue HHS Over Changes To Medicare 340B Drug Discount Program
Modern Healthcare: Oncologists Sue To Stop White House Outpatient Drug Pay Rule
Community oncologists are suing the Trump administration to stop implementation of its new outpatient drug pay demonstration, which would cut Medicare reimbursement for certain high-spend drugs. The Community Oncology Alliance argues that CMS' plan to tie drug payment to foreign prices in Medicare Part B would cause financial hardship for providers, reduce patient access, and reduce pay rates from other payers. The model depends on providers negotiating drugmakers' prices down to meet reduced reimbursement levels. (Cohrs, 12/11)
Stat: HHS Sued For Failing To Stop Drug Makers From Cutting 340B Drug Discounts
A group of hospital associations filed a lawsuit accusing the Department of Health and Human Services of failing to prevent a half dozen large drug makers from curtailing the discounts they offer through a federal program for safety-net hospitals. At issue is the 340B drug discount program, which was created in 1992 and requires drug makers to offer discounts that are typically estimated to be 25% to 50% — but could be much higher — on all outpatient drugs to hospitals and clinics that serve low-income populations. (Silverman, 12/12)
Stat: 'Most Favored Nations' Test Threatens Care For Medicare Beneficiaries
President Trump and other administration officials have talked a big game about their new most favored nation model for lowering prices for Medicare Part B drugs, including cancer therapies and other potentially lifesaving treatments administered by physicians. But they failed to disclose the fine print: By their own estimates, nearly 10% of people covered by Medicare would lose access to treatment in the first year, and almost 20% by the end of the second year. (Okon, 12/11)
In other news —
Modern Healthcare: HHS Finalizes Rule Easing Protection Of Substance Abuse Disorder Medical Records
HHS on Friday finalized a rule clarifying that courts can allow disclosure of confidential communications between patients and substance abuse treatment programs if it aids the investigation or prosecution of serious crimes. It aims to correct a 2017 rule that reworked privacy protections for substance use disorder information. According to the final rule, HHS didn't intend to block information that could help criminal investigations. (Brady, 12/11)
