Medicare desires to slash funds to hospitals for medication acquired by the 340B drug low cost program by greater than a 3rd starting subsequent 12 months, after the company mentioned its surveys discovered some sufferers paid extra for the medication than the hospitals did.
Underneath a proposal launched Thursday, Medicare would pay hospitals for 340B medication at their common gross sales worth minus 33.4%, dramatically lower than they’re getting presently, which is that worth plus 6%. The supply, a part of a proposed rule on hospital outpatient funds, represents the most recent swing at what’s turn into a hotly debated drug low cost program, considered by some as a lifeline for safety-net hospitals and by others as a revenue heart for rich well being programs.
The proposal drew swift condemnation from teams representing nonprofit and tutorial hospitals, who mentioned it will disproportionately hurt safety-net suppliers. That’s as a result of solely these nonprofit amenities are eligible for 340B, whereas for-profit hospitals will not be. Medicare’s proposed rule reveals a 7.4% pay improve to for-profit hospitals beneath the 340B adjustment.
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