Hospitals Threaten Legal Action Over CMS’s Decision To Slash Lucrative Drug Subsidies
Critics of the 340B program, designed to help hospitals with large numbers of uninsured patients, say the significant margin on the drugs gives hospitals an incentive to overuse certain drugs or choose high-priced options.
The Wall Street Journal:
Hospitals Vow Fight To Keep Medicare Drug Subsidies
The Trump administration said it is slashing a lucrative pharmaceutical subsidy Medicare pays some hospitals, prompting the American Hospital Association and other powerful hospital groups to threaten legal action to block the move. In a rule released Wednesday evening, the federal agency that runs Medicare said it would sharply lower what Medicare pays for certain drugs that certain hospitals buy and administer to patients through the subsidy program. (Evans, 11/1)
Modern Healthcare:
Hospital Groups To Sue CMS Over $1.6 Billion Cut To 340B Program
The nation's leading hospital associations are banding together to sue the CMS over the agency's plan to slash 340B drug payments to hospitals. Less than an hour after the CMS released the final rule, America's Essential Hospitals, the American Hospital Association and the Association of American Medical Colleges said they believe the agency has overstepped its statutory authority by cutting 340B drug payments by $1.6 billion, or 22.5% less than the average sales price. (Dickson, 11/1)
