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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

House Members Seek Delay of DSH Cuts

221 members of the House of Representatives have written to House leaders asking them to delay cuts in Medicaid disproportionate share payments (Medicaid DSH) that are scheduled to begin on October 1. The cuts, mandated by the Affordable Care Act, have already twice been delayed by Congress, both times for two years, and now, a majority of House members have written to House speaker Paul Ryan and minority leader Nancy Pelosi asking them to advance legislation to delay Medicaid DSH cuts once again. The purpose of Medicaid DSH payments is to help hospitals that serve especially large numbers of low-income [&hellip

NAUH Urges House to Delay Medicaid DSH Cuts

The House of Representatives should delay the proposed implementation of major cuts in Medicaid disproportionate share (Medicaid DSH) allotments to the states. The reduction of Medicaid DSH allotments, mandated by the Affordable Care Act, has already been delayed twice by Congress, and now, a bipartisan letter is being circulated among House members asking House Speaker Paul Ryan and House minority leader Nancy Pelosi to move legislation to delay the Medicaid DSH cuts again for another two years. In its message, NAUH has asked House members to sign onto the letter, which is being circulated by Representatives Eliot Engel (D-NY), John [&hellip

NAUH Urges Congress to Support Withdrawal of 340B Regulation

Ask the Centers for Medicare & Medicaid Services to withdraw its proposed regulation to reduce Medicare payments for prescription drugs covered by the section 340B prescription drug discount program. That’s the message in a bipartisan letter being circulated among members of Congress, to be sent to CMS administrator Seema Verma, and last week the National Association of Urban Hospitals wrote to every member of the House of Representatives asking them to sign that letter before it is sent to CMS. The 340B program provides discounts on prescription drugs to safety-net hospitals and other selected safety-net providers that serve especially large [&hellip

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