July 17, 2017

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.

Sales of drugs under the 340B discount program reached $16.2 billion last year, which was 34% higher than 2015 and accounted for 5% of the total US drug market.

The program has been plagued by complaints that it served mostly hospitals with middle and high income patients. Trump proposal aimed to address these complaints to ensure only the neediest hospitals were participating in the program.

The Affordable Care Act made new categories of hospitals eligible for 340B discounts including some children’s hospitals, freestanding cancer hospitals, sole community hospitals, and rural referral centers. In 2015, federal regulators released guidance clarifying who was eligible for the program

In recent days, government affairs staffers at both the American Hospital Association and America’s Essential Hospitals, as well as other industry insiders, have heard that the 340B recommendation won’t be included final drug pricing executive order whenever its released.

None were sure why it was omitted, but they believe it’s likely Trump would rather let Congress decide if there should be revisions to the program.

Multiple requests for comment to the White House were not returned.”

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