News Headlines Article

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.