Episode 20: Reconciliation Bill’s 340B Impact, CMS’ Big 340B Proposals and Rebate Update

In this episode, 340B Report Publisher & CEO Ted Slafsky and 340B Report Associate Editor and Senior Writers Shannon Young and Will Newton break down the latest 340B news, including key developments in Washington D.C., a federal 340B rebate court case and the ongoing lobbying effort of the White House’s Office of Management and Budget over a potential rebate model. Ted closes the episode with a touching tribute to his late mentor David Gergen.

Key Topics Covered:

Reconciliation Bill Becomes Law, Key Congressional Subpanel Updates Leaders 

Shannon and Will discuss the recent enactment of the GOP-backed reconciliation bill, known as the “Big Beautiful Bill,” including what its massive health spending cuts over the next decade could mean for 340B providers. Shannon highlights how 340B-related provisions stripped from the wide-ranging spending legislation have been reintroduced as part of a large bipartisan standalone bill focused on the Pharmacy Benefit Manager industry. And Ted discusses recent leadership changes on the House Energy and Commerce Health Subcommittee following U.S. Rep. Buddy Carter’s (R-Ga.) decision to step down as chair as he runs for U.S. Senate.

CMS Proposes Rules With Major 340B Implications

Shannon and Will break down how two new Centers for Medicare and Medicaid Services (CMS) proposed rules would affect the 340B program. Shannon offers an overview of CMS’ Outpatient Prospective Payment System (OPPS) draft rule and its significant implications for the 340B community. It contains controversial provisions to accelerate hospital outpatient payment cuts to offset previous 340B hospital lump sum repayments, as well as plans to survey hospital acquisition costs for certain outpatient medications. Next, Will discusses CMS’ proposal to establish, for the first time, claims-based approaches to identifying 340B claims billed to Medicare Part D.

340B Rebate Model Debates Heats Up

Will discusses the latest in drug industry efforts to implement controversial 340B rebate models. Four drugmakers are currently appealing a pair of lower courts’ rebate rulings, while dozens of program stakeholders—including drugmakers, providers and technology vendors—are meeting with federal officials in an effort to sway highly anticipated federal 340B rebate guidance.

Tribute to David Gergen

Ted offers a touching tribute to David Gergen, his first mentor and boss out of college. Gergen was a senior adviser to four U.S. presidents and a highly influential editor and political commentator. Ted reflects on his inspiring career and shares his thoughts on his mentorship.

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