Search Results Archives: July 2017

July 17, 2017

CMS Proposes More Than 22% Drop in 340B Drug Reimbursement in 2018 OPPS Rule

Health Leaders Media published an article titled, “CMS Proposes More Than 22% Drop in 340B Drug Reimbursement in 2018 OPPS Rule.” The article reads in part as follows;

“The 2018 OPPS proposed rule is one of the shortest, and latest, in recent memory, being released July 13 at only 663 pages, but it contains major proposed policy changes for the 340B drug discount program, new modifiers, and expands packaging to drug administration for the first time.

New OIG Report Confirms Our Worst Fears About 340B Contract Pharmacy Abuses

Drug Channels posted an article titled, “New OIG Report Confirms Our Worst Fears About 340B Contract Pharmacy Abuses.” The article reads in part as follows;

“Moments after yesterday’s post on the booming 340B contract pharmacy market, the Office of Inspector General (OIG) released the first of its three planned reports on the 340B drug discount program: Contract Pharmacy Arrangements in the 340B Program.

OIG’s research confirms many long-suspected problems regarding oversight, diversion, and the mystery methodologies for identifying 340B-eligible prescriptions.

But here’s what’s most troubling: the neediest patients are not benefiting from 340B discounts. In OIG’s sample, two-thirds of the hospitals do not offer the 340B price to uninsured patients. Wow.

Genentech’s Shocking $2 Billion 340B Revelation

Drug Channels released an article titled, “Genentech’s Shocking $2 Billion 340B Revelation.” The article reads in part as follows;

“ICYMI, the Roche Group recently made a startling disclosure: For the first half of 2016, the 340B Drug Pricing Program accounted for 18% of Genentech’s volume.

I estimate that at that rate, hospitals and other 340B-covered entities claimed discounts on about $3.4 billion in purchases annually from Genentech. With profit margins averaging 58%, that figure translates into about $2 billion in financial benefits.

One in Four U.S. Pharmacies is Now a 340B Contract Pharmacy

Drug Channels published an article titled, “One in Four U.S. Pharmacies is Now a 340B Contract Pharmacy.” The article reads in part as follows;

“As part of Drug Channels’ ongoing coverage of the 340B drug pricing program, I want to highlight our new analysis showing that the 340B drug pricing program continues to expand at a breakneck pace.

More than 15,300 pharmacy locations now have 35,000 contract pharmacy agreements with 340B covered entities. That accounts for nearly a quarter of total U.S. retail, mail, and specialty pharmacy locations. Walgreens still dominates, but its share is shrinking as CVS, Rite Aid, and Walmart pile into the market.

Trump may be backing off from plan to scale down 340B

Modern Healthcare posted an article titled, “Trump may be backing off from plan to scale down 340B.” The article reads in part as follows;

“Hospital lobbying groups say they’re hearing President Donald Trump may be backing off plans to scale back a federal program that requires drugmakers to give discounted products to hospitals that treat a high number of poor patients.

A proposed executive order on drug pricing from the Trump administration leaked late last month contained language that directed the HHS Secretary to find ways to reduce the size of the 340B program.