ASCO Urges CMS to Rescind 340B Reimbursement Cut

December 27, 2017

ASCO recently submitted comments to the Centers for Medicare & Medicaid Services (CMS) on the agency's final rule for the 2018 Hospital Outpatient Prospective Payment System (HOPPS). In a letter to CMS Administrator Seema Verma, ASCO commends the agency for finalizing revisions to the 14-day rule for laboratory tests, but the society has concerns over the agency’s reimbursement cuts to the 340B Drug Pricing Program (340B).

ASCO’s urges CMS to rescind its policy, which will reduce payment by more than 25 percent for separately payable non pass-through drugs purchased under the 340B Program in calendar year (CY) 2018.

While ASCO supports 340B reform, the agency’s decision to make such a drastic cut to the program’s reimbursement will likely destabilize many hospital-based oncology programs that provide critical access to cancer care. The society urges policymakers to focus on meeting the original intent of 340B to provide resources and incentives for the delivery of high-quality care for uninsured, underinsured, and low-income patients. ASCO is concerned that this latest change to 340B could actually do the most harm to the very facilities that are truly satisfying the spirit and intent of the program.

In ASCO’s view, 340B needs change, but dramatic payment reductions don’t actually address the widely-recognized concerns about the program, including the program’s growth, administration, and oversight. ASCO would support CMS, in collaboration with Congress and the Health Resources and Services Administration (HRSA), in developing a more tailored approach to addressing these concerns and ensuring greater accountability and transparency regarding the use of funds obtained through participation in the 340B Drug Pricing Program.

Read the full comments letter.

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