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CVS Caremark Cancels Plans to Cut Payments for 340B Providers

In a confidential notice sent to hospitals participating in the 340B Drug Pricing Program, CVS Caremark reversed a plan to change reimbursements for pharmacies that contract with 340B hospitals.

As initially planned, any pharmacy participating in 340B could have been denied rebates provided through the pharmacy benefit manager (PBM). The PBM also planned to reserve the right to “apply unique terms and conditions” to 340B providers’ retail networks.

Both changes were scheduled to go into effect on April 1 and would have resulted in significant reimbursement cuts to 340B hospitals.

Contact Senior Director of Policy Erin O’Malley at or 202.585.0127 with questions.


About the Author

Rachel Schwartz is a policy associate at America's Essential Hospitals.

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