Nationwide, children’s hospitals are beginning to receive notification from drug companies, saying they no longer qualify for federally-mandated discounts on “orphan drugs,” which are used to treat rare medical conditions, according to a New York Times report.
This year, as part of healthcare reform, Congress blocked children’s hospitals from the price cuts when revising the discount program, which was established 18 years ago. A House Democrat called the loss an “honest mistake in drafting” and said Congress did not intend to remove the discounts children’s hospitals already had for orphan drugs, according to a citation in the report.
The discounts typically range from 30 percent to 50 percent, and the change is expected to cost children’s hospitals hundreds of millions of dollars. Orphan drugs are intended to treat diseases affecting less than 200,000 people in the country.
Hospitals have received letters from drug companies retracting discounts on orphan drugs often involved in the treatment of patients with cancer, cerebral palsy and various neurological disorders, among other conditions.
Read the New York Times report on children’s hospitals and orphan drugs.
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