Providers who were excluded from the 340B drug pricing program during the pandemic will be able to apply for reinstatement, the Biden administration said Friday. notification to providers.
Hospitals, single community hospitals, rural referral centres, children’s hospitals, and stand-alone cancer hospitals that were excluded from the program after January 26, 2020 due to a change in patient mix, may apply for reinstatement.
Providers must prove that the proportion of patients receiving Medicare or Medicaid treatment has decreased as a result of a public health emergency or pandemic.
The 340B program allows hospitals and providers that serve large numbers of low-income Medicare and Medicaid patients to receive deep discounts on prescription drugs. Providers say these savings are then funneled back into their communities or offset the cost of helping uninsured people.
About 70 providers lost their eligibility during the pandemic, according to an analysis of HRSA data by consulting firm Strategic Health Care.
Suppliers who have already lost their eligibility must apply for reinstatement by April 14. Suppliers who lose their 340B eligibility between Friday and December 31 will have 30 days from the date of termination to reapply.
However, health care providers who have been approved by the Health Resources and Services Administration to re-enroll in the program will not receive retroactive payments, but will receive future discounts.
The HRSA announcement was the result of a $1.5 trillion spending package passed by Congress last week. The American Hospital Association, along with other groups, actively promoted a package to allow 340B providers to re-enroll in the program.