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 and maintained the program.
That support was tempered recently when the Centers for Medicare & Medicaid Services proposed a 28 percent cut in Medicare payments to hospitals for drugs provided to low-income patients through the 340B program. Hospital industry groups responded by suing the federal government and will have their day in court later this month.
Pennsylvania safety-net hospitals participate in the 340B program and consider it essential to their ability to serve their communities.
What are the issues? Why do hospitals and other providers consider 340B so essential to their well-being while pharmaceutical companies and now, CMS, view the program with increasing skepticism?
Kaiser Health News has taken a look at these and other 340B questions. Read its story here.
The site, a collaboration between the state’s Human Services and Aging departments, lists services in 12 categories: advocacy, behavioral health, employment, finance, health care, housing, in-home services, legal, meals, protection from abuse, support groups, and transportation. It also provides information to and links about programs, organizations, and services.
Diabetes admissions in Pennsylvania resulted in $205 million in payments to hospitals in 2016, but according to the Pennsylvania Health Care Cost Containment Council, about 86 percent of 2016 adult admissions could have been prevented with more timely and appropriate care and disease management.
Included in the November edition are articles about:
The 340B program is an essential source of resources for private Pennsylvania safety-net hospitals and many stand to lose hundreds of thousands of dollars, or even millions of dollars a year, if the payment cut is not reversed.
An early November bulletin from CMS, however, clarifies that this approach is still permissible, which is good news for Pennsylvania safety-net hospitals and SNAP members hoping to benefit from the state’s hospital assessment.
According to the news release, those changes include:
Community HealthChoices is a new state program of managed long-term services and supports for Pennsylvanians over the age of 55 who are eligible for both Medicare and Medicaid.