CMS would absorb 340B drug discount program under leaked HHS reorganization proposal
Title
CMS Poised to Absorb 340B Drug Discount Program Under Leaked HHS Reorganization Proposal
Keywords
- 340B drug discount program
- CMS (Centers for Medicare & Medicaid Services)
- HHS (U.S. Department of Health and Human Services)
- HRSA (Health Resources and Services Administration)
- healthcare policy
- drug pricing
- government reorganization
- prescription drug discounts
Key Facts
- A leaked HHS reorganization proposal suggests that the 340B drug discount program, which currently operates under HRSA, may be absorbed by CMS15.
- The 340B program requires drug manufacturers participating in Medicaid to provide outpatient drugs to certain healthcare providers at reduced prices, known as the 340B ceiling price5.
- Currently, HRSA administers the 340B program, while CMS oversees Medicaid and Medicare; both are under HHS but typically operate independently5.
- The integration of the 340B program into CMS could lead to significant administrative and policy changes, as CMS does not traditionally manage the 340B program and tends not to comment on its operations5.
- This potential shift comes amid ongoing debates and litigation over the scope and enforcement of the 340B program and recent policy changes affecting payments to providers for 340B-acquired drugs24.
- The reorganization plan has not been officially confirmed, and further details on the proposed changes, timeline, and implications for stakeholders remain undisclosed at this time1.
Sources:
1. https://endpts.com/cms-would-absorb-340b-drug-discount-program-under-leaked-hhs-proposal/
2. https://www.cms.gov/newsroom/fact-sheets/hospital-outpatient-prospective-payment-system-opps-remedy-340b-acquired-drug-payment-policy
4. https://www.americanactionforum.org/insight/the-340b-drug-discount-program-confusion-driving-reform-and-litigation/
5. https://www.jdsupra.com/legalnews/stakeholders-raise-340b-concerns-in-9282003/