WASHINGTON — The chair of the Senate health committee introduced a bill to restrict a federal drug discount program known as 340B that has been lucrative for nonprofit hospitals.
The bill by Sen. Bill Cassidy (R-La.) comes as hospitals face attacks on their bottom lines, especially in Medicaid. The tax bill that Republicans passed last summer significantly decreased the federal government’s share of Medicaid costs and is expected to reduce the number of people on Medicaid. Hospitals also face the prospect of legislation that would lower hospital payments to levels charged by doctor offices, an idea known as site-neutral payments.
The 340B program also has received scrutiny, and it could be a target for lowering health care spending in future legislation. Cassidy has been looking into the 340B program for years, including an investigation into the company that contracts with the government to be the program’s vendor and a hearing in October.
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