Medicare Proposes Dramatic Cuts to 340B Drug Discounts for Hospitals
Medicare is proposing a 33.4% cut in payments to hospitals for drugs acquired through the 340B drug discount program, which would dramatically reduce the discounts currently being offered.[2418906]
The proposal has drawn swift condemnation from groups representing nonprofit and academic hospitals, who argue that it would disproportionately harm safety-net providers.[2418906]
Lawmakers are urging the Trump administration to force Eli Lilly to reinstate mandated price breaks to hospitals participating in the 340B program.[2418907]
The pharmaceutical company, Eli Lilly, has stopped offering discounts under the 340B program after it targeted approximately 50 larger hospital systems that had not complied with a new policy announced earlier this year.[2418907]
The proposed rule on hospital outpatient payments represents the latest swing at what's become a hotly debated drug discount program, viewed by some as a lifeline for safety net hospitals and by others as a profit center for wealthy health systems.[2418906]