340B Health Statement on GAO Report Regarding 340B and Medicare Part B
FOR IMMEDIATE RELEASE
July 6, 2015
Contact: Randy Barrett
(202) 536-2285
randy.barrett@340bhealth.org
340B Health Statement on GAO Report Regarding 340B and Medicare Part B
Washington, D.C.—340B Health has significant concerns about today's Government Accountability Office findings on Medicare Part B spending at hospitals participating in the 340B drug pricing program. The Department of Health and Human Services expresses similar concerns in its written comments on the GAO's report.
There is insufficient data in the report to justify a conclusion that higher per beneficiary spending on Medicare Part B drugs at 340B disproportionate share (DSH) hospitals “may” be in response to financial incentives created by the 340B program. The report does not sufficiently evaluate the causes behind the increased spending, such as treatment of more complicated cancer patients. The report also does not evaluate whether higher spending has an impact on patient outcomes. (Click here for more details about our concerns.)
We believe these findings deserve additional exploration, and we have retained outside experts to evaluate Medicare Part B spending at 340B DSH hospitals in more depth by looking at what is causing the reportedly higher spending and how health outcomes are affected. We encourage policymakers to work with 340B stakeholders on this issue to understand the underlying basis for these results and ensure that changes are not made that would undermine this incredibly valuable program.
340B Health commends the GAO for recognizing 340B hospitals' important role in treating low-income and vulnerable patients. The GAO’s finding that 340B hospitals provide more uncompensated care than non-340B hospitals is consistent with new research demonstrating that 340B hospitals target services to vulnerable populations.
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340B Health is an association of more than 1,000 hospitals. We are the leading advocate and resource for those providers who serve their communities through participation in the 340B drug pricing program. For more information about us and the 340B program, visit www.340bhealth.org.
Click here for a pdf of this statement.