340B Needs Legislative Fix For Overspending On Medicare Patients, GAO Says
This article was originally published in The Pink Sheet Daily
Drug discount program creates financial incentive for participating hospitals to prescribe more drugs or more expensive drugs reimbursed by Medicare Part B, resulting in 'substantially higher' spending, a GAO report says.
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Medicare payments to hospitals for drugs provided under the 340B program would be reduced to average sales price (ASP) minus 22.5%, which CMS believes is more closely aligned with the discounted price obtained by the providers.
Analysis supported by drug industry adds to growing research on scale of Medicare Part B payments to hospitals receiving 340B drug discounts.
House Commerce Committee members are drafting legislation to make numerous significant changes to the 340B drug discount program, including the definition of eligible patients, new reporting and auditing requirements for providers and drug manufacturers, rules for contract pharmacies – and a new user-fee program for participating health care providers.