WASHINGTON — The chair of the Senate health committee, Sen. Bill Cassidy (R-La.), has introduced legislation aimed at restricting the federal 340B drug discount program, which has been financially advantageous for nonprofit hospitals.
This move comes at a time when hospitals are grappling with significant financial pressures, particularly due to recent changes in Medicaid funding. The tax reforms enacted by Republicans last summer have notably reduced the federal government’s contribution to Medicaid, which is anticipated to lead to a decrease in enrollment. Additionally, hospitals are facing potential legislative measures that would align their payment rates with those of outpatient facilities, a concept known as site-neutral payments.
The 340B program has increasingly come under scrutiny, positioning it as a potential target for future healthcare spending reductions. Cassidy has been investigating the program for several years, including a recent inquiry into the vendor that manages the program and a hearing focused on its implications for American patients.
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