Senators seek to reverse $1.6B in drug discount program cuts

Six U.S. senators are calling on the federal government to reverse a new rule that includes $1.6 billion in Medicare Part B payment cuts to hospitals enrolled in the 340B Drug Pricing Program, according to The Hill.

The payment cuts are part of CMS' 2018 Medicare Outpatient Prospective Payment System rule, which is slated to take effect Jan. 1.

Now, the senators, who are from both sides of the aisle, seek to reverse the cuts via year-end spending legislation, according to the report.

"As supporters of the 340B program, we have serious concerns with the … OPPS final rule, which changes Medicare reimbursement for 340B hospitals to 22.5 percent less than the average sales price plus 6 percent …," the senators wrote in a Dec. 5 letter to Senate Majority Leader Mitch McConnell, R-Ky., and Senate Minority Leader Chuck Schumer, D-N.Y. "As talks continue on end of the year packages, we urge you to work with us to prevent these cuts."

The senators also included a previous letter from more than 50 lawmakers, sent to CMS after the proposed OPPS rule was published in July, which indicated their concerns with the proposal.

The six senators concluded the Dec. 5 letter by saying, "We recognize there are opportunities to strengthen the program through targeted clarifications and improvements to ensure it continues to fulfill its purpose with integrity and efficiency and are willing to work with stakeholders to find productive solutions in this space. However, with a Jan. 1, 2018 start date and over half of the Senate and half of the House of Representatives having expressed concerns with CMS' rule, we request your help in ensuring the long-term sustainability of the 340B program by preventing these changes in an end of the year package."

Last month, Reps. David McKinley, R-W.Va., and Mike Thompson, D-Calif.,  introduced a bill that would prevent the cuts. Additionally, the Association of American Medical Colleges, the American Hospital Association and America's Essential Hospitals, as well as three health systems, are part of a lawsuit filed last month against HHS that seeks to prevent the cuts.

Ayla Ellison contributed to this report. 

 

 

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