340B HEALTH CALLS ON CONGRESSIONAL LEADERS TO BLOCK MEDICARE CUTS TO HOSPITALS
Washington, D.C., December 14, 2017—340B Health, the association of hospitals and health systems in the 340B drug discount program, is calling on Congressional leaders to act before the end of the year to block scheduled cuts to Medicare Part B drug payments to 340B hospitals.
In a Dec. 13 letter to the bipartisan leadership of Congress, 340B Health said the impending cuts “will cause tremendous disruption and loss of services for low-income and rural patients.”
Separately, 340B Health joined six other national safety net organizations in a similar appeal to Congressional leaders today in a joint letter with America’s Essential Hospitals, Children’s Hospital Association, The Hemophilia Alliance, National Association of Counties, National Alliance of State and Territorial AIDS Directors, and National Rural Health Association. “This payment cut will take away desperately needed resources that safety net providers use to treat vulnerable patients, inconsistent with the purpose of the 340B program,” the groups said.
Bipartisan legislation has been introduced by Reps. David McKinley (R-W.Va.) and Mike Thompson (D-Calif.) that would block the Centers for Medicare & Medicaid Services (CMS) from implementing the cuts under Medicare’s Outpatient Prospective Payment System. That legislation now has 142 sponsors. On Dec. 5, six leading Senators—three prominent Republicans and three Democrats—wrote to their leaders urging action on legislation blocking the cuts.
Under final rules published by CMS on Nov.13, Medicare Part B drug payments to many 340B hospitals would be sharply reduced by 28.5 percent, resulting in a loss to those institutions of $1.6 billion in 2018.
If allowed to take effect, the CMS regulation “will cause hospitals to cut back on services, close service sites, and let go clinicians and other caregivers,” said 340B Health President and Chief Executive Officer Ted Slafsky. Dr. Sam Ross, MD, Chief Executive Officer of Bon Secours Baltimore Health System, and Chair of the 340B Health Board of Directors, also expressed his concerns.
“Allowing these cuts to go into effect will have very real consequences on hospitals and their patients. The 340B drug pricing law was intended to allow safety net providers to stretch their scarce resources to serve more low-income patients and communities. The regulation flies in the face of this goal,” said Ross.
CMS’ proposed regulations are also being challenged in court by national, state, and local hospital organizations. The U.S. District Court for the District of Columbia has scheduled a hearing on Dec. 21 to hear arguments from the hospitals and the government. The hospital groups argue that the CMS regulation is unlawful and exceeds the government’s authority under Medicare law and the Public Health Service Act.
“Bipartisan majorities in both houses of Congress have made it clear that they do not support the discriminatory cut in payments to 340B hospitals. Now is the time to take action to ensure these misguided reductions do not take effect,” added Slafsky.
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Contact Richard Sorian at richard.sorian@340bhealth.org or 202-536-2285.