The Trump administration has proposed a new rule to limit the amount hospitals can charge for discounted drugs, potentially saving Medicare patients $1.1 billion next year. The rule applies to hospitals participating in the 340B program, which allows them to purchase outpatient prescription drugs at discounted prices.
Background
The 340B program was designed to help healthcare providers stretch scarce federal resources to serve more patients. However, hospitals have been able to bill insurers at rates that exceed the discounted prices, resulting in higher costs for patients.
The proposed rule would change the formula for what hospitals can be reimbursed, cutting the average reimbursement rate by roughly 40%. This would cap Medicare reimbursement for participating hospitals at the average sales prices, minus 33.4%.
Impact
The American Hospital Association has expressed concerns that the proposed rule would compound the financial pressures its members face, potentially undermining their ability to maintain essential services and protect affordable access to care.
The administration estimates that the average older adult with Medicare Part B coverage who is administered one of these drugs would save $800 a year in co-payments, totaling $1.1 billion in savings for all patients with that coverage.
Original reporting: 40/29 / KHBS (NW Arkansas) — read the source article.
