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January 2018
Why We Should be Concerned about Cuts to 340B Drug Pricing Program

Cuts by the Centers for Medicare and Medicaid Services to the 340B Drug Pricing Program will make it difficult for some health clinics and hospitals to continue to provide care to vulnerable and underserved patients. The cuts, which took effect on January 1, will reduce reimbursement for Medicare Part B drugs by nearly 30 percent for some participating hospitals.

The 340B Drug Pricing Program is a federal program that allows eligible health care organizations, such as federally-qualified health centers, Ryan White-funded clinics, other safety-net clinics and many hospitals, to purchase drugs at significantly reduced prices. Savings generated from these low prices allow organizations to better serve their communities by reaching more patients, providing comprehensive care, and funding additional wrap-around services for vulnerable populations.

IDSA and HIVMA released a joint statement outlining our concerns with these or any funding cuts to the 340B drug pricing program, which allows hospitals and clinics to provide high quality care to low-income, vulnerable and underserved patients with savings from reduced drug prices. Members of Congress have introduced bipartisan legislation which would preempt the implementation of this provision and continue 340B payments to hospitals for Medicare Part B drugs at current rates. IDSA and HIVMA urge Congress to support and pass this measure.

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