A Trump administration agency proposal to cut Medicare drug payments to hospitals serving poor and rural Americans is counterproductive and would actually reduce access to care, a group of over 1,300 hospitals says in comments submitted today to the U.S. Department of Health and Human Services (HHS).
The proposal by the administration’s Centers for Medicare & Medicaid Services (CMS) would slash payments to hospitals participating in a federal drug discount program called “340B.” The program reduces drug costs for hospitals and other providers that serve a disproportionate share of low-income and rural patients. Hospitals use the savings from the program to waive co-pays and provide pharmaceuticals and other services at free or reduced cost to low-income and other vulnerable patients.
340B hospitals say CMS’s proposal would undermine their ability to continue providing these services. Because the savings would be offset by increased Medicare spending for other services and higher beneficiary co-pays, the proposal would not reduce costs for Medicare or beneficiaries. Instead, it would increase costs for low-income patients by preventing hospitals from continuing to discount drugs and other services for patients in need. 340B Health pointed out that many of the Medicare patients served at their hospitals already get their co-pays waived.
340B Health submitted the comments today strongly opposing the almost 30 percent proposed payment reduction targeting 340B hospitals issued by CMS in July. The proposed reduction would go into effect on Jan. 1, 2018.
340B Health cites a new survey highlighting how the proposed payment cut would affect patient care. Hospitals unanimously reported it would affect their ability to provide services to their low-income and rural patients. Eighty-six percent of hospitals said that the proposed rule would affect their ability to provide clinical services, especially infusion and oncology services to low-income patients.
74 percent said the cut would affect pharmacy services, more than two-thirds said the cut would affect their ability to provide uncompensated care, and nearly half said the cut would impact quality of care and patient outcomes.
340B Health is an association of more than 1,300 hospitals. We are the leading advocate and resource for hospitals that serve their communities through participation in the 340B drug pricing program. Learn more at www.340bhealth.org.
SOURCE 340B Health
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