Cancer hospitals and other 340B hospitals are evaluating the potential impact of a proposed Centers for Medicare and Medicaid Services (CMS) rule that would reduce Medicare reimbursement for 340B-acquired drugs by 37%. Bass, Berry & Sims attorney Jeff Davis noted that the proposal could disproportionately affect providers that administer high volumes of oncology drugs. “I think it’s fair to say that a hospital that does a lot more cancer care could be disproportionately affected,” Jeff told The Cancer Letter. “Because when you think about the drugs that are going to be affected by this payment cut, we’re talking about high-cost drugs that get administered in hospital clinic settings.”
Jeff emphasized that the financial margin generated through the 340B program has long been central to supporting safety-net services and expanding access to care. “We believe the intent of the program, in terms of how Congress set it up, is a funding mechanism for safety net providers through the discounted drug price,” he said. “The purpose of the program is to help these covered entities stretch their scarce resources so they can provide more services and reach more patients.”
Jeff also questioned whether CMS can rely on survey data used to calculate the proposed reimbursement reduction, noting that only 23% of 340B hospitals responded. As providers assess the proposal and prepare comments, the debate is likely to focus on the role 340B savings play in sustaining cancer care services for vulnerable patient populations.
The full article, “Cancer hospitals brace for impact, as CMS moves to slash 340B payments by 33%,” was published by The Cancer Letter on July 27 and is available online (subscription required).