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in 340B Health News Releases

These Harmful Cuts Must Stop

WASHINGTON, D.C., NOV. 1, 2019— The Centers for Medicare & Medicaid Services (CMS) today finalized 2020 Medicare Part B rates that will continue deep payment reductions to many not-for-profit hospitals participating in the 340B drug pricing program. The cuts of nearly 30 percent are a continuation of reductions that have been in place for 340B hospitals since 2018. A federal court has twice ruled the policy “unlawful.” The government has appealed those decisions, and oral arguments are scheduled for Nov. 8.

340B hospitals affected by the cuts have been forced to make difficult choices about the specialty health services and patient assistance that they are able to offer their low-income and rural patients using their program savings. Since the 340B payment reductions first took effect on Jan. 1, 2018, 340B hospitals collectively have been losing millions of dollars.

340B Health President and CEO Maureen Testoni made the following statement:

“For three years, the Centers for Medicare & Medicaid Services has ignored the needs of patients and the safety-net hospitals that care for them to pursue an unlawful reduction in Medicare payments to 340B hospitals. A federal court has ruled repeatedly that these cuts are inconsistent with the Medicare statute and must be reversed. A bipartisan majority in both houses of Congress has agreed. It’s time to stop this unfunny version of ‘Groundhog Day’ and restore Medicare payments for 340B hospitals to their legal, statutory level.”


340B Health is an association of more than 1,400 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.