STAT+: Cassidy proposes bill to rein in 340B drug discount program

Senator Bill Cassidy (R-La.) introduced a bill this week aimed at restricting the federal 340B drug discount program. This program has generated significant revenue for nonprofit hospitals, which are currently facing financial pressures. These pressures include a reduction in the federal government's share of Medicaid costs due to a tax bill passed last summer, potentially decreasing the number of Medicaid enrollees. Additionally, hospitals may face legislation mandating site-neutral payments, which would align hospital payments with those of doctor offices, thereby lowering overall hospital reimbursement rates. The 340B program itself has been under scrutiny and could be targeted for healthcare spending reductions in future legislative efforts. Senator Cassidy has been investigating the 340B program for several years, including an inquiry into the government's contracted vendor for the program and a hearing held in October.