The fate of cuts to the 340B Drug Pricing Program, scheduled to take effect on Jan. 1, 2018, remains uncertain. It is anticipated that Congress – having finished its work on tax reform – will take up this critical issue and move to stop implementation of the cuts proposed by the Centers for Medicare & Medicaid Services (CMS).
A multi-pronged approach is in action to address the 340B cuts. A lawsuit, filed by the American Hospital Association and others, is scheduled to be heard in District Court (Washington, D.C.) tomorrow. The lawsuit is a preliminary injunction to stop implementation of the nearly 30 percent cuts to the program citing that CMS does not have the legal authority. SDAHO joined 32 other state and regional associations in filing an amicus brief to support this lawsuit. It is unknown whether the judge will rule immediately on the injunction or if a decision will be rendered before Dec. 31.
A bipartisan bill, HR 4392, was also introduced last month to prevent the cuts from taking place. That legislation has not moved forward. Additionally, several senators, including Sen. Thune, signed a letter to leadership urging them to prevent the cuts as part of year-end legislation.