ABOUT THIS EPISODE
In this episode, 340B Report Publisher and CEO Ted Slafsky joins Editor-in-Chief Will Newton, Managing Editor Shannon Young and National Correspondent Luke Zarzecki in breaking down the latest in 340B news, including: a trio of congressional 340B proposals; potential steep Medicare Part B cuts for 340B hospitals; and a new provider lawsuit challenging Eli Lilly's move to cut off 340B pricing.
Key Topics Covered:
Three Major 340B Legislative Proposals
Shannon, Luke and Ted discuss three new 340B-related proposals in Congress. Shannon breaks down U.S. Sen. Bill Cassidy's (R-La.) recently unveiled 340B discussion draft, which proposes several changes to the drug discount program that largely drew pushback from 340B provider advocates and support from the drug industry. Cassidy, who chairs the Senate Health, Education, Labor and Pensions (HELP) Committee, will leave Congress at the end of 2026. Shannon also discusses the U.S. House Ways & Means Committee's recent markup of a bill that would require certain hospitals to report 340B-related information on federal tax forms. Luke discusses a new bipartisan House bill that would also make several changes to the 340B program, but received mixed reactions from stakeholders. Ted offers insight on the various proposals, including how stakeholders have reacted to them.
CMS Eyes Steep Cuts for 340B Hospitals
Will breaks down the Centers for Medicare & Medicaid Services' (CMS) proposal to cut Medicare Part B reimbursement for 340B hospitals by nearly 37%. He notes that CMS argues the effort will save taxpayers money, while hospitals contend it will undermine the 340B program's purpose of expanding access and services for vulnerable patients. Will also explains that CMS attempted to cut Part B reimbursement during the first Trump administration—before the U.S. Supreme Court unanimously overturned that effort on procedural grounds.
Florida Hospital Sues Lilly Over 340B Data Reqs
Will details a Florida teaching hospital's recent federal lawsuit challenging Lilly's move to cut off 340B pricing for failure to comply with the drugmaker's new 340B in-house pharmacy claims data requirements. He notes that more provider lawsuits are likely to follow, but explains that covered entities can face legal obstacles when attempting to directly sue drugmakers under 340B.
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This episode is brought to you by one of our great Ultra Diamond sponsors, Proximity. Proximity is the 340B revenue operations platform built to bring control back to your program. Proximity unifies and normalizes TPA, pharmacy, EHR, wholesaler and payer data into a single system—so issues can be identified, corrected and resolved across the full claim lifecycle. To learn more, reach out to hello@proximityhealth.com. We are very grateful to Proximity for its sponsorship.
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