340B Hospitals Report Stalled IRA Refunds Ahead of Rate Cut
At Becker's Fall Chief Pharmacy Officer Summit, UChicago Medicine pharmacy chief Denise Scarpelli said Inflation Reduction Act refunds owed to its 340B hospitals dropped to zero in September and October after being strong in January, and she does not know if the halt is intentional. Rush University System's Kate Schaafsma said she is checking whether her own system's refunds have similarly stalled. CMS finalized a Medicare payment rate of ASP minus 28% for 340B-acquired drugs effective January 1, 2027, replacing ASP plus 6%, which 340B Health CEO Maureen Testoni said amounts to roughly a 32% cut once the add-on loss is counted; she said hospitals cannot sue until the cut takes effect. A HRSA rebate pilot requiring hospitals to buy drugs at full price and wait for manufacturer repayment also returns January 1, and a related lawsuit is pending, while Testoni said at least three hospitals have sued manufacturers under state consumer protection laws and Arizona's attorney general has taken action.