MEDICARE PAYS 340B HOSPITALS LESS THAN OTHER PROVIDERS FOR PART B DRUGS

MEDICARE PAYS 340B HOSPITALS LESS THAN OTHER PROVIDERS FOR PART B DRUGS

Washington, D.C.—A new study released today shows Medicare pays disproportionate share hospitals in the 340B drug discount program on average 13 percent less for separately payable drugs reimbursed through Medicare Part B. This is in comparison to what it pays other hospitals and physician practices in the Part B market. The study also shows that 340B DSH hospitals are treating more vulnerable patients than other providers in terms of race, age, disability, and dual eligibility.

"Not only do 340B DSH hospitals treat a more vulnerable population…[they] have lower Medicare spending per patient for Part B separately billable drugs than patients who receive care at non-340B covered entities," the study concludes.

"The 340B program gives hospitals with high volumes of low-income and other vulnerable patients discounts on pharmaceuticals," said Ted Slafsky, President and Chief Executive Officer of 340B Health, the hospital association that sponsored the research. “This study confirms that hospitals accessing 340B savings are treating significantly higher numbers of vulnerable patients and that 340B hospitals are not providing more drugs or more expensive drugs than non-340B providers.”

Today's study by Dobson DaVanzo & Associates examines separately payable Medicare Part B drug utilization and spending and compares 340B DSH hospitals to all other providers in the Part B market. Comparing 340B DSH hospitals to the full range of providers reimbursed for Part B drugs, rather than to non-340B hospitals alone, yields "a more complete analysis of Medicare Part B spending differences," Dobson DaVanzo says.

For more information, visit www.340bhealth.org