Modern Healthcare Quotes Akin Partner Kelly Cleary on 340B Drug Discount Program
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For its article “CMS, HHS understate 340B ‘clawback’s’ financial impact, lawyers say,” Modern Healthcare quoted Akin health care & life sciences partner Kelly Cleary. The article reports reactions to a regulation finalized last week by which providers participating in the 340B drug discount program will receive $9 billion in 2024. The regulation, the article notes, is intended to compensate hospitals for previous years’ cuts in 340B payments.
Modern Healthcare notes that, in order to do so, there will be a reduction of $7.8 billion in reimbursement for other outpatient products and services, due to federal requirements for budget-neutral spending. The Centers for Medicare and Medicaid Services will spread the reimbursement rate reduction for these outpatient products and services over a 16-year period beginning in three years, the article notes, even as hospitals continue to fight against outpatient pay cuts.
Kelly said that the 16-year recoupment period is uncertain, noting that, as more and more individuals move to Medicare Advantage plans from Medicare, the number of claims filed for Medicare is expected to shrink, which could affect the recoupment timeline.
