STATEMENT ON CMS PROPOSED REMEDY FOR UNLAWFUL 340B MEDICARE PAYMENT CUTS
WASHINGTON, D.C., JULY 7, 2023— Today, the Centers for Medicare & Medicaid Services (CMS) released a proposed rule and fact sheet outlining its plan to remedy Medicare Part B pay cuts to 340B hospitals that were in place from 2018 through most of 2022. Last year, the U.S. Supreme Court unanimously ruled that these reductions were unlawful. The agency is proposing lump-sum repayments to affected 340B hospitals for the additional amounts they should have been paid since 2018. But CMS also will decrease the rates it will pay in future years for non-drug items and services to account for redistributions to all hospitals paid under the Medicare outpatient prospective payment system (OPPS) of the amounts it cut during those years. The agency also proposes no additional interest payments in its remedy.
The following is attributed to 340B Health President and CEO Maureen Testoni:
“Today’s proposed rule by CMS is a significant step towards rectifying the unlawful Medicare Part B cuts to 340B hospitals. We appreciate CMS’s recognition of the need for accountability and their commitment to providing lump-sum reimbursements to affected hospitals. However, we urge CMS to reconsider its proposed remedy of rate decreases for non-drug items, which would represent a financial penalty for many hospitals that had no option for avoiding those payments. We also reiterate our call on the agency to repay 340B hospitals with interest. 340B Health intends to file comments with CMS during the public comment period.”
Contact: Jon Tilton at jon.tilton@340bhealth.org or 202-536-2285