Medicare wants to cut hospital payments for 340B drugs by more than a third next year, a move that drew criticism from nonprofit and academic hospitals.
Medicare is proposing to cut payments to hospitals for drugs bought through the 340B drug discount program by more than a third starting next year. The agency said its surveys found some patients paid more for the drugs than the hospitals did.
Under the proposal released Thursday, hospitals would be paid for 340B drugs at their average sales price minus 33.4%. That is far below the current rate, which pays the average sales price plus 6%.
The change is part of a proposed rule on hospital outpatient payments and is the latest move in a long-running debate over the 340B program. Supporters have described it as a financial lifeline for safety-net hospitals, while critics have said it functions as a profit center for wealthy health systems.
The proposal was quickly criticized by groups representing nonprofit and academic hospitals, which said the change would hit safety-net providers hardest. Only nonprofit hospitals are eligible for 340B, while for-profit hospitals are not.
Medicare’s proposed rule also shows a 7.4% pay increase for for-profit hospitals under the 340B adjustment.
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