MedPAC Proposal to Trim 340B Payments Appears DOA

December 11, 2015

Modern Healthcare (Dickson, 12/11) reported that the “Medicare Payment Advisory Commission [MedPAC] may not move forward with a controversial proposal that would reduce Part B drug payment rates for hospitals participating in the 340B Drug Pricing Program.” Being that the 340B Program is overseen by the Health Resources and Services Administration, some panel members were unsure whether MedPAC could make the proposal. “’The fundamental issue is that this is a public health services program, and we're a Medicare payment advisory commission,’ said Herb Kuhn, panel member and CEO of the Missouri Hospital Association. ‘I'm just worried about mission creep a little bit.’” Dr. Francis Crosson, the Chairman of MedPAC, has said he will “bring back the 340B proposal with changes for discussion during the panel’s next meeting in January. But he doubted even a modified proposal would attract enough votes to pass the recommendation.”