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CMS Seeks Comments on Collecting 340B Hospital Acquisition Costs

The Centers for Medicare & Medicaid Services (CMS) is accepting comments until Nov. 29 on a proposal to collect acquisition cost data from hospitals participating in the 340B Drug Pricing Program.

Under the Paperwork Reduction Act of 1995, federal agencies must solicit public comment and receive approval from the Office of Management and Budget on proposed information collection requests. The new information collection request would take the form of a hospital survey for specified covered outpatient drugs. If CMS proceeds with its proposal to collect this data, hospitals enrolled in the 340B program in the last quarter of 2018 or the first quarter of 2019 must complete the survey between Feb. 17 and March 16, 2020.

In the notice, CMS references pending litigation against the agency by America’s Essential Hospitals and other plaintiffs on the issue of CMS’ Medicare payment cuts to 340B hospitals. Under the contested policy first instituted in 2018, CMS pays 340B hospitals 77.5 percent of average sales price (ASP) for most Medicare Part B drugs, compared to the default rate of 106 percent of ASP it pays other hospitals. A federal district court judge held the policy to be in violation of the Medicare statute, and CMS since has appealed the case. CMS states that if it loses its appeal in the case, it might use acquisition cost data it collects from the survey to set payment rates for 340B drugs. America’s Essential Hospitals is conducting further analysis of the proposed information collection request.

Contact Senior Director of Policy Erin O’Malley at eomalley@essentialhospitals.org or 202.585.0127 with questions.

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About the Author

Shahid Zaman is a senior policy analyst at America's Essential Hospitals.

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