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CVS Caremark reverses course on planned pay cuts to 340B providers
Modern Healthcare

CVS Caremark wanted to cut its reimbursements to 340B providers and pharmacies. Now it’s backpedaling.

In a confidential notice sent Monday to 340B providers and obtained by Modern Healthcare, CVS Caremark said it would not institute a substantial pay cut to 340B pharmacies that was set to start this spring. The decision by the pharmacy benefit manager powerhouse not to put payment policy changes in place is a massive win for 340B hospitals.

CVS Caremark first alerted 340B covered entities to the reimbursement cuts late last year through two key amendments to its payment policy.

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