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07/19/2017

CMS Proposes Cuts to 340B Program

CMS PROPOSES 2018 POLICY AND RATE CHANGES FOR

HOSPITAL OUTPATIENT PAYMENT SYSTEMS

CMS has issued a proposed rule that updates payment rates and policy changes in the Hospital Outpatient

Prospective Payment System (OPPS) and Ambulatory Surgical Center (ASC) Payment System. The proposed rule is one of several for 2018 that reflect a broader strategy to relieve regulatory burdens for providers; support the patient-doctor relationship in healthcare; and promote transparency, flexibility and innovation in the delivery of care.

Among the provisions in this rule, CMS is proposing to change the payment rate for certain Medicare Part B drugs purchased by hospitals through the 340B program. The proposed rule also requests comment on how CMS can best implement the proposal to pass savings on to beneficiaries and providers, and to allow seniors to save money on their drug costs.

HHS Secretary Tom Price, MD released the following statement regarding CMS’ announcement of proposed reimbursement changes to the 340B drug discount program:

“This proposal has the potential to reduce drug costs for seniors, by at least an estimated $180 million per year. If it is adopted, Medicare would pay hospitals for drugs purchased through the 340B discount program at a price more consistent with the actual cost hospitals and other providers pay to acquire those drugs. Seniors would see those savings passed on to them in the form of lower copays.”

For a fact sheet on the proposed rule, please visit: https://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2017-Fact-Sheet-items/2017-07-13.html.