A group of lawmakers introduced a bipartisan bill to reverse a Trump administration rule that would cut Medicare reimbursement for medicines purchased under the federal 340B Drug Discount Program, which was designed to boost revenues for hospitals that primarily serve low-income patients. The cut is estimated to save Medicare and its beneficiaries about $1.6 billion next year.
The sponsors were among dozens of lawmakers who two months ago wrote the Centers for Medicare and Medicaid Services to argue that cutting reimbursement is a “misguided policy” that would limit the ability of hospitals to serve vulnerable patients. They further maintained the move would not reduce drug costs, as the pharmaceutical industry has suggested.
The legislation arrives just three days after several of the largest trade groups representing hospitals and teaching colleges — including the American Hospital Association and the Association of American Medical Colleges — filed a federal lawsuit in hopes of preventing the rule from taking effect.
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