Maine hospitals are joining others across the country in a lawsuit that seeks to stop a Trump Administration pilot program that will makes changes to a drug discount program known as 340B.
The suit, filed in U.S. District Court in Maine by the Maine Hospital Association, St. Mary's Regional Medical Center in Lewiston, the American Hospital Association and three other medical centers across the country alleges that the changes would impose additional costs and administrative burdens on hospitals that are already financially strapped.
Under the 340B program, eligible hospitals buy drugs at a discounted price in order to offset the cost of treating low income patients. The pilot program slated to begin in January would require providers to get rebates for select drugs instead of an upfront discount.
The hospitals say that will cause a major cash flow problem for hospitals that already operate on razor thin margins.
According to court filings, the 26 participating Maine hospitals in 340B receive a collective benefit of about $250 million a year from the program.
"Giving hospitals only a few months to comply with these burdensome new requirements or risk losing millions of dollars in discounts they are entitled to under the law will harm patients and communities across the country," said Rick Pollack, President and CEO of the American Hospital Association in a written statement. "We are asking the court to act quickly to protect access to vital care services.”
The Trump administration has said the pilot is aimed at boosting transparency. Consumer advocates have criticized 340B, saying it's unclear to what extent hospitals are using the program as intended to boost access for low income patients.
