CER Daily Newsfeed

The 340B Drug Pricing Program Is A Hidden Tax Expenditure

(4/24, Ike Brannon, Anthony T. Lo Sasso, Health Affairs Forefront) comments “...The rapid growth of 340B discounts directly reduces the taxable revenue of pharmaceutical manufacturers. As the volume of discounted sales increases, manufacturers’ profits decline, lowering their federal tax liabilities. These losses are not offset by increased access to care; instead, they largely accrue to nonprofit, tax-exempt hospitals in the form of higher margins...In effect, 340B functions as a mandated transfer from taxable firms to tax-exempt entities, precisely the kind of fiscal impact that tax-expenditure accounting is meant to capture.” Full

Why Some Providers Are Steering Clear of CMS’ ACO LEAD Model

(4/24, Diane Eastabrook, Modern Healthcare) reports “...A narrow application window and a requirement that providers meet certain patient enrollment minimums are among the reasons providers cite for postponing or abandoning plans to take part in the Long-term Enhanced Accountable Care Organization Design model known as LEAD.” Subscription Required

Unleashing The Full Potential Of MSSP To Drive Greater ACO Participation And Savings

(4/24, Sean Cavanaugh,Travis Broome, Farzad Mostashari, Health Affairs Forefront) comments “...CMS should hold primary care physicians in MIPS to the same cost standard as an ACO, creating something like an ‘ACO Lite.’ This would increase the validity of the MIPS cost measure...Practices should be paid a one-time ‘site-neutral’ flat fee per beneficiary based on the number of Medicare fee-for-service beneficiaries newly assigned to them in each performance year. CMS should run a beneficiary assignment at the beginning of each performance year and make bonus payments quarterly based on this assignment.” Full