340B Health


in 340B Health News Releases

WASHINGTON, D.C.— The following statement on today’s Centers for Medicare & Medicaid Services bulletin is attributed to 340B Health President and CEO Maureen Testoni:

“We appreciate CMS’ guidance on the important topic of preventing duplicate discounts on drugs purchased by state Medicaid programs. 340B hospitals strongly agree that duplicate discounts should not occur and appreciate CMS’ efforts to clarify what has been a gray area for states, hospitals, and manufacturers.”

“Many of the options in the bulletin represent approaches some states use to prevent duplicate discounts. Some of these approaches we strongly support, while others raise concerns. However, we are extremely troubled by the inclusion of language that would allow states to limit the ability of some or all 340B hospitals and contract pharmacies to use 340B purchased drugs for Medicaid beneficiaries. Allowing such an opt-out would undermine the very purpose of 340B and potentially damage safety-net hospitals’ ability to care for patients with low incomes.”

“To participate in 340B, most hospitals must document the fact that they treat a disproportionately large share of low-income patients enrolled in Medicaid. Preventing such hospitals from receiving the statutory discounts that 340B provides for outpatient prescription drugs would negate the intended purpose of using these savings to provide more care to low-income patients.”

“We call on CMS to reconsider this bulletin language and to engage with the 340B community to discuss several of these options. We stand ready to work with the government to ensure we collectively meet the twin obligations of preventing duplicate discounts and protecting the safety net that serves those who are most in need.”

Contact: Richard Sorian at richard.sorian@340bhealth.org or 202-536-2285.