Update on 340B Hospital Cuts Plus Details on New 340B Hospital Legislation
Congress yesterday finished work for 2017 without passing legislation to stop the Centers for Medicare & Medicaid Services (CMS) from cutting Medicare Part B drug reimbursement to 340B DSH hospitals and rural referral centers by 28.5 percent, effective Jan. 1. We thank our members and partners for advocating for a legislative solution and we will work with the bill’s sponsors on next steps.
During yesterday’s court hearing on the lawsuit challenging the payment cuts, U.S. District Judge Rudolph Contreras said he would announce a decision before the end of the year on whether to grant a temporary injunction to stop the cuts from going into effect while the lawsuit continues or to issue a final opinion on the legality of the hospital cuts. We will let you know as soon as the judge issues a ruling.
Also late yesterday afternoon, Reps. Larry Bucshon (R-Ind.) and Scott Peters (D-Calif.) introduced H.R. 4710, legislation that would make significant changes to hospital participation in the 340B program. Called the 340B PAUSE Act, short for the 340B Protecting Access for the Underserved and Safety-Net Entities Act, it reportedly would impose a two-year moratorium on new DSH parent hospital registrations in 340B and on new child site registrations for existing DSH hospitals in the program. The bill would also reportedly impose new reporting requirements on DSH hospitals and free-standing children’s and cancer hospitals, requiring them to collect and report data on:
- patients receiving 340B drugs broken down by payer mix, for hospitals and their child sites
- total costs and total charity care costs incurred by each child site
- total 340B drug reimbursement and acquisition costs for each hospital
- contracts with state or local government for nonprofit hospitals required to have such contracts
- the names of all third-party vendors providing 340B services for each hospital and child site
The bill reportedly would instruct the Secretary of Health and Human Services to publish interim final regulations implementing these program changes within six months of the bill’s enactment.
Reps. Bucshon and Peters’ bill would also reportedly require a study by the Department of Health and Human Services Office of Inspector General (OIG) on how much charity care is provided by 340B DSH hospitals and free-standing children’s and cancer hospitals. It would likewise reportedly require a study by the Government Accountability Office on nonprofit DSH hospitals and free-standing children’s and cancer hospitals’ contracts with state and local government and a study on 340B drug acquisition costs and reimbursement for these hospitals.
Contact: Kathryn DiBitetto (kathryn.dibitetto@340bhealth.org or 202-552-5855) or Jeff Davis (jeff.davis@340bhealth.org or 202-552-5867)