Panel urges CMS to abandon proposal to cut 340B payments

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Pills and capsules in medical vial

The Centers for Medicare & Medicaid Services (CMS) Advisory Panel on Hospital Outpatient Payment (HOP) recommended Monday that the agency drop plans to finalize a proposal that would drastically cut Medicare payments for drugs acquired under the 340B Drug Pricing Program.

In July, CMS proposed to pay separately-payable, non-pass-through drugs (other than vaccines) purchased through the 340B program at the average sales price (ASP) minus 22.5%, rather than ASP plus 6%.  The CMS HOP Panel suggested that the agency collect data from public comment and other sources related to the proposal’s impact if such a cut were implemented. In addition, they recommended CMS assess the proposal’s regulatory burden, especially from a proposed CMS modifier that differs from some state Medicaid program methodology.

SDAHO has joined the American Hospital Association (AHA) and others urging CMS to abandon the 340B proposal and instead focus their attention on reducing the unsustainable increases in the cost of drugs.  The deadline to submit comments on the CMS 340B proposal is September 11.