On December 8th 2003, President Bush signed the Medicare Prescription Drug, Improvement and Modernization Act of 2003.  The 680 page bill is the most extensive health reform legislation since the passage of Medicare in 1965.  While there are many elements of the bill that will impact safety net hospital pharmacies, we are particularly pleased to report the legislation provides an exemption from the Medicaid "best price" calculation for inpatient drugs for 340B hospitals. Now that the law has been enacted, pharmaceutical manufacturers can offer lower prices on inpatient pharmaceuticals to 340B hospitals without having to extend the same discount to the entire Medicaid market which comprises close to 15 percent of the market. We believe that this legislation will remove a significant regulatory obstacle that has prevented 340B hospitals from receiving lower prices on inpatient pharmaceuticals.

Please click HERE to view the actual 340B inpatient best price exemption law and the Joint Explanatory Statement from Congress on the 340B provision.  We have also published a briefing packet for our members on how to implement the law.  To receive a copy of the briefing packet, click HERE.  The Coalition will also be hosting a national conference on the new law and other key issues affecting the 340B hospital pharmacies, pharmaceutical manufacturers and other stakeholders in Washington, DC on February 27th.  More details to come soon.

If you want a detailed summary of the entire Medicare Rx bill, please click HERE.