Millions of Americans worry about the high costs of life-saving prescription drugs. That’s why 25 years ago, Congress created the 340B Drug Pricing Program to help hospitals expand access to prescription drugs and support essential services for our most vulnerable patients.

The program constitutes less than 3% of the more than $450 billion in U.S. annual drug purchases. Because it is funded by drug manufacturer discounts, not federal dollars, it doesn’t cost the government or taxpayers one penny – but it makes a big difference to patients.

We’re deeply disappointed in the Centers for Medicare & Medicaid Services’ recent decision to cut payments to hospitals participating in 340B that will put needed prescription drugs further out of reach, and dramatically threaten access to health care for many, including the uninsured, the elderly, those with chronic conditions and the disabled.

Contrary to the Administration’s claims, this policy change does nothing to address the stated goal of reducing the cost of pharmaceuticals, and would actually cause increases in some Medicare beneficiaries’ out-of-pocket costs.

We led the effort to circulate letters signed by a majority of both houses of Congress calling on the Administration to reconsider this policy and recognize the need for the 340B program to continue at full strength. CMS’ decision goes against the will of the Congress, and Congress must intervene to rein them in. We look forward to working with Congress to address this issue. Stay tuned for further updates.

The AHA will also be leading a coalition of other hospital groups and members to pursue litigation to prevent these draconian cuts to payments for 340B drugs from taking effect. We’ve heard from you, our members, how vital the 340B program is – and we’ll do whatever we can to defend it.

Please join our fight and contact your members of Congress and urge them to support 340B. This program must be protected so that hospitals can continue to provide quality care and services for the neediest patients.

Headline
The Centers for Medicare & Medicaid Services has released a fact sheet and FAQs on the 340B Part D claims data repository that will go live Oct. 1. Data…
Headline
The AHA Aug. 26 urged the Centers for Medicare & Medicaid Services not to finalize two proposals in the calendar year 2027 outpatient prospective payment…
Headline
The AHA Aug. 25 submitted comments to Sen. Bill Cassidy, R-La., on the 340B Drug Pricing Integrity and Affordability for Patients Act (340B for Patients Act),…
Headline
A new AHA blog details how hospitals are modernizing care for older Americans. It highlights the Age-Friendly Health Systems initiative, created by The John A…
Headline
The AHA Aug. 17 provided comments to the Centers for Medicare & Medicaid Services on its proposed rule to codify in regulation the Medicare Drug Price…
Headline
The AHA’s Community Health Improvement network will host a webinar Aug. 26 at noon ET that will feature discussion from leaders at CredibleMind on what a…