WASHINGTON >> Reps. Mike Thompson (CA-05) and David B. McKinley, P.E. (WV-01) introduced H.R. 4392 to reverse a Centers for Medicare and Medicaid Services (CMS) rule cutting $1.6B for drugs purchased by certain hospitals covered under the 340B program. These cuts jeopardize care for millions by directly reducing revenue to hospitals that care for vulnerable patients in underserved and rural communities, without addressing the underlying price of the drugs.
“This rule dramatically undermines the ability of hospitals across the country to deliver care to our nation’s most vulnerable populations. I’m disappointed that CMS did not listen to hospitals, nor a majority of members in the House and Senate, and approved a rule that puts both hospitals and patients at risk,” said Thompson. “I will work with my colleagues on both sides of the aisle to stop this rule and ensure the 340B program can continue to serve low-income populations as Congress intended.”
On November 1, CMS cut the reimbursement rate for Medicare Part B drugs purchased by certain hospitals covered under the 340B program by around $1.6B. This legislation would completely negate the effects of this rule.
Since 1992, the 340B program has used mandated discounts offered by drug manufacturers to help hospitals and other covered entities provide discounted drugs and lifesaving services to their patients. The CMS rule eliminates funding that hospitals use to support the unreimbursed cost of care for those who need it the most.
On September 28, McKinley and Thompson organized a bipartisan letter to CMS Administrator Seema Verma urging the administration to withdraw its harmful proposal to cut the 340B Drug Pricing Program. This letter was signed by 228 Members of Congress from both sides of the aisle who understand that protecting access to affordable care is a top priority.
“Protecting access to prescription drugs for low income communities should be a priority. Unfortunately, CMS’s misguided rule jeopardizes the ability of rural hospitals to provide vital services. This would have a huge impact on West Virginia hospitals’ ability to provide affordable care. We led a bipartisan letter to CMS with nearly 250 signers, but they didn’t listen. This bill ensures that rural hospitals are able to continue providing affordable services, and gives rural families peace of mind,” said McKinley.
