February 340Buzz: Government influence on the 340B program
Summary
This month, we take a look at the 2021 proposed budget from the White House, new reports about the 340B program from MedPAC and GAO, and review where we stand on several lawsuits, including those regarding the Affordable Care Act and site-neutral payments. In Ohio, for example, lawmakers are promoting a bill that would stop pharmacy benefit managers from imposing additional charges or reducing reimbursements for prescription drugs for hospitals and clinics in the 340B drug-pricing program. The MedPAC findings contradict the results of a report commissioned by the Pharmaceutical Research and Manufacturers of America (PhRMA) last month, which found that 340B hospitals were getting reimbursed three times the amount they initially paid for the drugs. In response to this, last month, a large group of hospitals moved to enjoin the identical Part B reimbursement cuts for 2020 before they take effect in Advocate Bromenn Regional Medical Center v. Azar, the National Law Review reported. “Instead of undermining the health care safety net, the agency should withdraw this plan, restore Medicare payments to their statutory levels, and reimburse all affected hospitals for the revenue they have lost since January 2018.” We urge covered entities to submit a comment before March 9 at OIRA_Submission@omb.eop.gov (include reference to ‘‘OGE Form 201 paperwork comment’’ in the subject line of the message).