CMS Proposes Collection of 340B Drug Cost Information from Hospitals

Thoughtware Alert Published: Oct 14, 2019
Healthcare Event

On September 30, 2019, CMS issued a proposed notice to collect cost information for specific outpatient covered drugs from hospitals participating in the 340B Drug Pricing Program (340B Program) to set payment rates based on cost. CMS plans to gather this information through a survey that would take hospitals approximately 48 hours to prepare the necessary data for and complete. The proposed survey collection period is February 17, 2020, through March 16, 2020. Any hospital that was enrolled in the 340B Program in the last quarter of 2018 and/or first quarter of 2019 would be required to complete the survey. 

This comes after a judge ruled the U.S. Department of Health & Human Services (HHS) “does not have the statutory authority” to reduce Medicare Part B drug reimbursement to hospitals participating in the 340B Program. One argument for this ruling asserted the Secretary of HHS had not collected the necessary data to set payment rates. CMS has appealed this ruling, but many speculate this proposed rule indicates CMS is admitting it didn’t have the survey data required to establish current Outpatient Prospective Payment System drug payment reduction of Average Sales Price minus 22.5 percent.

CMS is seeking comments regarding this notice, and all comments must be received by November 29, 2019. For more information, reach out to your BKD trusted advisor or use the Contact Us form below.

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