STAT+: Pharmalittle: Deadline looms for drugmakers to negotiate with Medicare; GOP senator probes 340B program at two hospitals
The deadline for drugmakers to sign agreements to negotiate with Medicare on pricing is this Sunday.
And so, another working week will soon draw to a close. Not a moment too soon, yes? This is, you may recall, our treasured signal to daydream about weekend plans. Our agenda is exceedingly modest. Weather permitting, we expect to promenade with the official mascots, take a nap or three and, perhaps, hold another listening party with Mrs. Pharmalot. The rotation will likely include this, this, this, and this. And what about you? Now that autumn is here, this is a fine time to traipse through apple orchards and pumpkin patches. This may also be an opportunity to catch up on your reading. You could binge-watch by the telly. Or reach out to someone special. Well, whatever you do, have a grand time. But be safe. Enjoy, and see you soon. …
The deadline for drugmakers to sign agreements to negotiate with Medicare on pricing is fast approaching, The Hill reminds us. Major drugmakers have until Sunday to agree to participate in the program or potentially face heavy taxes and lose their ability to sell through Medicare. With courts yet to impose an injunction in a clutch of pending lawsuits, several companies appear ready to proceed, including Merck, AstraZeneca, Bristol-Myers Squibb, and Boehringer Ingelheim. Those that do not negotiate can withdraw their products from Medicare, losing a highly lucrative income source. The alternative is an excise tax on a selected product’s sales in the U.S., starting at 65%.
The top-ranking Republican on the U.S. Senate health committee is investigating two hospitals — Cleveland Clinic and Bon Secours — over their use of the 340B government program that provides big drug discounts in return for serving low-income communities, STAT reports. At issue is whether Congress intended 340B to directly benefit low-income and uninsured patients or whether it was meant to help finance the hospitals, which could use the money as they see fit to add services. Hospitals say they use the money to provide such services as free care for uninsured patients, but drugmakers argue that hospitals and chain pharmacies abuse the program and divert its cash flows to other uses.
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