The 340B program sets a ceiling on the
price that covered entities pay for outpatient drugs. On December
27, 2018, the U.S. District Court for the District of Columbia
ruled that the HHS Secretary did not have statutory authority to
change Medicare Payment rates for 340B Drugs. The Courts asserted
in part that the Secretary had not collected the necessary data to
set payment rates based on acquisition costs. As a result of this
ruling, CMS believes that it is important to begin obtaining
acquisition costs for specified covered outpatient drugs to set
future payment rates based on cost for certain 340B Hospitals. This
survey will be used to help determine payment amounts for each drug
acquired through the 340B Prime Vendor Program. We want to ensure
that the Medicare program pays for specified covered outpatient
drugs, purchased under the 340B Drug Pricing Program, at a
reasonable payment amount to ensure access to care is maintained,
prudent payers of taxpayer dollars, and ensure that Medicare
beneficiaries can also stretch their scarce resources. MedPAC has
consistently stated that Medicare should institute policies that
improve the program’s value to beneficiaries and taxpayers. We
believe that utilizing the authority granted under Section
1833(t)(14)(D)(ii) is a step forward in increasing value to the
program while being cognizant of the constraints to the program. In
the March 2019 Report to The Congress MedPAC noted in part that
outpatient payments increased in part due to rapid growth in Part B
drug spending.
PL: Pub.L. 108 - 173 1833(t)(14)(D)(i) Name
of Law: The Medicare Modernization Act of 2003, section 603(a)
PL: Pub.L. 108 - 173 1833(t)(14)(D)(ii) Name of Law: The Medicare
Modernization Act of 2003, section 603(a)
Stephan McKenzie 410 786-1943
stephan.mckenzie@cms.hhs.gov
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.