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Hospital groups to sue CMS over $1.6 billion 340B drug payment cut

Hospital associations are preparing to take on the Centers for Medicare and Medicaid Services over a planned cut of $1.6 billion dollars to the 340B drug payment program.

By Marlene Y. Satter | Updated on November 02, 2017
The 340B program is intended to reduce operating costs for hospitals that serve a disproportionate number of low-income patients.

Hospital associations are preparing to take on the Centers for Medicare and Medicaid Services over a planned cut of $1.6 billion dollars to the 340B drug payment program.

Modern Healthcare reports that in less than an hour after CMS released the final rule, America’s Essential Hospitals, the American Hospital Association and the Association of American Medical Colleges said they believe the agency has overstepped its statutory authority by cutting 340B drug payments by $1.6 billion, or 22.5 percent less than the average sales price.

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