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NAUH Asks Congress to Block 340B and Medicaid DSH Cuts

Pass legislation blocking cuts in Medicaid disproportionate share payments (Medicaid DSH) and Medicare payments made to qualified providers for prescription drugs under the section 340B prescription drug discount program, NAUH has asked the leaders of the House and Senate. The 340B cut in question was adopted recently by the Centers for Medicare & Medicaid Services in a Medicare new regulation adopted in the fall.  The Medicaid DSH cut is mandated by the Affordable Care Act but has twice been delayed by Congress. See NAUH’s letter to congressional leaders here

The Battle Over 340B

Hospitals and other health care providers say it is an essential tool in ensuring access to care, and to prescription drugs, for their low-income patients. Pharmaceutical companies say it has expanded beyond its original purpose and is being used by hospitals to pad their profits. Members of Congress are divided:  some are supportive and some are skeptical. The section 340B program that requires drug companies to provide discounts to selected hospitals and other providers that serve large numbers of low-income patients has been the subject of controversy in recent years.  During that time, the administration has generally sided with hospitals [&hellip

NAUH Asks House to Renew CHIP and Delay Medicaid DSH Cuts

In a message sent to every member of the House of Representatives, NAUH conveyed its support for key provisions in HR 3922, the Championing Healthy Kids Act. Those provisions include renewal of the Children’s Health Insurance Program (CHIP) and a two-year delay in implementation of mandatory cuts in Medicaid disproportionate share (Medicaid DSH) allotments to states.  NAUH asked House members to seek a bipartisan agreement to adopt and pay for these important measures. See NAUH’s message to House members here

340B Changes Would Hurt Hospital Margins

Proposed changes in the federal section 340B prescription drug discount program would hurt hospital margins. So says Moody’s Investors Service, the credit rating agency. According to Moody’s, the margins of non-profit hospitals are already under pressure because revenue increases are not keeping pace with prescription drug costs.  Reductions of payments under the 340B program recently proposed by the Centers for Medicare & Medicaid Services would make a challenging situation worse, Moody’s speculates. Under the 340B program, eligible hospitals purchase prescription drugs at a discount, supply them to eligible outpatients, and use the savings they gain to provide additional services and [&hellip

House Members to CMS: Don’t Cut 340B Payments

More than half of the members of the House of Representatives have written to CMS administrator Seema Verma asking her to withdraw a controversial proposal that would greatly reduce Medicare reimbursement for prescription drugs for urban safety-net hospitals and other safety-net providers that serve large numbers of low-income patients.. At issue are proposed changes in the federal section 340B prescription drug discount program – changes that would drastically reduce payments to participating hospitals for the prescription drugs they provide to low-income outpatients.  Savings from the program help underwrite services and outreach for low-income patients. The letter to CMS administrator Verma [&hellip

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