MedPAC's proposed cut to hospitals in 340B drug program hits Congress in March

February 112016MedPAC's Proposed Cut to Hospitals in 340B Drug Program Hits Congress in March

Medicare Part B cuts may be imminent. 340B covered entities need to understand the potential financial impact of reimbursement reduction, and identify ways to mitigate revenue-loss and offset losses.

MedPAC votes 14 – 3 in favor of 10% Reduction of Medicare Part B reimbursement to 340B Covered Entities. A formal proposal to enact changes is likely to be submitted in March. Despite opposition from AHA (American Hospital Association) and 340B Health, an advocacy group for the 340B program consisting of over 1,000 hospital constituents, experts believe reimbursement cuts will be accepted. Reach out to an Alinea consultant to quantify the potential financial impact of Medicare B cuts to your covered entity.

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