The Centers for Medicare & Medicaid Services yesterday  surveying hospitals about their acquisition costs for specified covered outpatient drugs under the 340B drug savings program. In the outpatient prospective payment system final rule for calendar year 2018, CMS finalized a policy to adjust payment for separately payable outpatient drugs acquired by 340B-eligible hospitals from Average Sales Price plus 6% to ASP minus 22.5%. In a lawsuit brought by the AHA, and joined by The Association of American Medical Colleges, America鈥檚 Essential Hospitals and three hospital plaintiffs, a federal judge last year ruled that the cut was unlawful, in part because the Department of Health and Human Services had not collected the necessary data to set payment rates based on acquisition costs. CMS has appealed the ruling. 鈥淚n the event that the ruling is affirmed, CMS believes that it is important to begin obtaining acquisition costs for specified covered outpatient drugs to set payment rates based on cost for 340B-acquired drugs when they are furnished by certain covered entity hospitals,鈥 the CMS notice states. The notice will be published in Monday鈥檚 Federal Register with comments accepted for 60 days.

Related News Articles

Headline
The AHA June 16 released a report showing hospitals that participated in the 340B Drug Pricing Program are not only subject to disproportionately greater鈥
Chairperson's File
Public
Advocacy is such an important part of what we do as hospitals and health systems 鈥 and what the AHA does on behalf of our field 鈥 to help ensure that we get鈥
Headline
The AHA June 4 filed an amicus brief in the U.S. District Court for the Middle District of Tennessee in defense of the state鈥檚 340B contract pharmacy law鈥
Headline
A U.S. district court judge for the District of Columbia May 15 ruled the Department of Health and Human Services must preapprove the use of 340B 鈥渞ebate鈥
Headline
The AHA May 14 filed an amicus brief in the U.S. District Court for the District of South Dakota in defense of the state鈥檚 340B contract pharmacy law鈥
Headline
The AHA May 9 urged the Department of Health and Human Services to deny drug companies鈥 requests to approve their unlawful 340B rebate models. 鈥淭he 340B鈥