STATEMENT ON PROPOSED MEDICARE PAYMENT CUTS TO 340B HOSPITALS IN 2021
WASHINGTON, D.C.— The Centers for Medicare & Medicaid Services (CMS) today unveiled its proposed 2021 Medicare outpatient prospective payment system (OPPS) rule continuing and expanding cuts to many hospitals participating in the 340B drug pricing program. The following statement is attributed to 340B Health President and CEO Maureen Testoni:
“We are disappointed but not surprised that the administration has chosen to continue its pursuit of this damaging payment policy. 340B hospitals treat a significant share of patients with low incomes enrolled in Medicaid and Medicare, including many who are living with chronic conditions such as diabetes. Since 2018, these hospitals have been underpaid and forced to make tough decisions on what services to cut to maintain the core of their care for patients in need. 340B disproportionate share hospitals provide 75% of Medicaid hospital care to patients, services that are reimbursed at rates lower than what it costs to deliver them. It should go without saying that during a global pandemic, it is foolhardy for the administration to stubbornly push and worsen a Medicare payment policy that hurts safety-net hospitals and their patients.”
“CMS claims the new round of hospital cuts is tied to the results of the flawed acquisition cost survey that the agency launched suddenly amid the COVID-19 pandemic. The survey failed to meet the basic requirements of federal statute, and its results should be thrown out. We call on the administration to wake up to reality and halt this years-long regulatory assault on the health care safety net.”
Contact: Richard Sorian at richard.sorian@340bhealth.org or 202-536-2285.