February 16, 2011—The Obama administration's proposed 0.1 percent user fee for safety-net providers enrolled in the 340B program would be patterned on the Department of Veterans Affairs' (VA) "industrial funding fee"—a 0.5 percent surcharge on pharmaceuticals and other health care products and services that federal agencies and their authorized contractors buy from the VA's … [Read more...]
Obama Calls for 340B User-Fee System
President proposes a penny charge on every $10 in drug purchases to fund OPA.February 14, 2011—The Obama administration today proposed the first-ever user fee for providers enrolled in the 340B drug discount program, a 0.1 percent levy on each purchase to pay for the program's operating expenses and improve its administration and oversight. The White House included the user fee plan in its formal budget request to Congress for the fiscal year that … [Read more...]
U.S. Senate Rejects Measure to Repeal Health care Reform
Vote comes just days after a judge declares the entire law unconstitutional.February 3, 2011—The Democratic-controlled U.S. Senate yesterday defeated a Republican-sponsored amendment to an aviation bill that would have repealed last year's health care reform law, including its expansion of the 340B drug discount program and gradual elimination of the "donut hole" in Medicare beneficiaries' Part D prescription drug benefits. The vote came two weeks … [Read more...]
OPA Issues New Guidance on Discharge Prescriptions
Hospital group cautiously optimistic about policy clarification.January 26, 2011—The Office of Pharmacy Affairs (OPA) has published guidance on its Web site that appears to modify its position on the use of 340B-purchased drugs for discharge prescriptions. Hospitals enrolled in 340B say that OPA technical assistance contractors have been telling them that, per OPA policy, 340B drugs may not be used for patients whose only connection with … [Read more...]
HRSA Readies New 340B Patient Definition for Publication
Guidance will have a major effect on how drug discounts can be used.January 26, 2011—The Health Resources and Services Administration (HRSA) has sent the White House a new definition of "patient" for purposes of 340B drug discounts for review prior to its publication in the Federal Register. According to an agency spokesperson, HRSA also intends to formally withdraw its controversial January 2007 proposed patient definition, which provider … [Read more...]
House Passes Symbolic Bill to Repeal Health Care Reform
GOP might be targeting HRSA for cost savings and reorganization.January 21, 2011—As was widely expected, the GOP-controlled U.S. House voted 245 to 189 this week to repeal last year's health care reform law and directed four committees yesterday to begin work on a replacement. The Democratic-controlled Senate has vowed to block the repeal bill and President Obama has likewise vowed to veto it should it reach his desk. The resolution … [Read more...]
Nation’s Highest Court Hears Major 340B Drug Overcharging Case
Justices appear skeptical of providers' claim that they possess a right to sue.January 20, 2011—Attorneys for major drug manufacturers, the federal government and two California counties faced hard questions at the U.S. Supreme Court yesterday as the justices tried to tease out whether Congress intended to give 340B providers the right to sue drug companies for alleged overcharges or whether, in the absence of such intent, the providers possess that right … [Read more...]