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, joined by several other national groups representing 340B hospitals, Aug. 8 urged the Health Resources and Services Administration to extend the鈥
Headline
The AHA today filed an amicus brief in the U.S. Court of Appeals for the D.C. Circuit, defending the Department of Health and Human Services鈥 decision to鈥
Headline
The Department of Health and Human Services today issued a notice announcing a 340B Rebate Model Pilot Program as a voluntary mechanism for qualifying drug鈥
Headline
Rep. Doris Matsui, D-Calif., and Sen. Peter Welch, D-Vt., today introduced the 340B Patients Act, AHA-supported legislation that would codify 340B providers'鈥
Headline
The AHA July 16 filed an amicus brief in the U.S. District Court for the District of Colorado in defense of the state鈥檚 340B contract pharmacy law prohibiting鈥
Headline
The U.S. District Court for the Eastern District of Missouri July 11 granted a motion by the state to dismiss claims by AbbVie that the state鈥檚 340B contract鈥