340B Déjà Vu: CMS Seeks to Collect Data From Hospitals
For the second time in four months, the federal government has announced its intention to collect data from hospitals and other providers on what they pay for the prescription drugs they purchase through the section 340B prescription drug discount program.
Last week the Centers for Medicare & Medicaid Services published a notice announcing its intention to collect this data. Previously, health care interests sued CMS when it attempted in 2018 to reduce payments to providers for drugs purchased through the 340B program and the court ruled against CMS, maintaining that the agency did not have enough data on hospitals’ acquisition costs for the drugs to justify the proposed payment reduction. The newly announced data collection effort seeks to rectify that shortcoming as the court considers CMS’s appeal of a similar decision in a lawsuit filed after CMS again proposed reducing 340B payments and was again rebuffed by the courts in 2019.
Under federal law, CMS must publish a notice declaring its intention to collect such data and seek input from stakeholders. For this particular notice, stakeholders have until March 9 to respond.
CMS published a similar notice in September of 2019 announcing its intention to collect similar data. That data collection never took place.
Most Pennsylvania safety-net hospitals participate in the 340B program and consider it a vital tool in serving the many low-income residents of the communities in which they are located.
To learn more about CMS’s 340B data collection effort, see the notice it published in the Federal Register and read the Becker’s Hospital Review article “CMS ready to survey 340B hospitals about drug acquisition costs.”
Ever since, the program – essentially, Medicaid block grants – has been the subject of criticism from many public officials and health care stakeholders.
The Medicaid block grant guidance offers states a blueprint for curtailing their Medicaid costs by imposing limits on that spending that they negotiate with the federal government.
Among the groups submitting formal comment letters to the Centers for Medicare & Medicaid Services in response to the proposed Medicaid fiscal accountability regulation was the Safety-Net Association of Pennsylvania. See SNAP’s letter
The proposed budget, presented to the state legislature earlier this week, includes the following new initiatives:
Included in this month’s edition are articles about:
In a news release, Governor Wolf said that
Last August a new Department of Homeland Security regulation took effect that authorized the federal government to reject immigrants’ applications for visas and green cards if their financial situation and employment prospects suggested that they might become a “public charge” and dependent on government safety-net programs like Medicaid and food stamps. A number of groups sued to prevent the rule’s implementation and federal courts imposed an injunction against its enforcement but now the Supreme Court has lifted the last of these injunctions.
For years, county governments ran their own programs, which provided free non-emergency transportation to doctor offices for Medicaid patients. About 55,000 Pennsylvanians served by Medicaid use this program.