340B Health


in 340B Health News Releases

WASHINGTON, D.C. NOV. 1, 2022— Today, the Centers for Medicare & Medicaid Services (CMS) issued a final rule for the CY 2023 Medicare outpatient prospective payment system (OPPS) that sets payment rates for Medicare Part B outpatient services, including drugs. The new rule, which takes effect Jan. 1, will restore payments for drugs to 340B hospitals to the same amounts all other hospitals receive for those drugs. From 2018 to 2022, Medicare has paid many 340B hospitals nearly 30% less for drugs administered to Medicare patients under a policy adopted by the Trump administration. On June 15, a unanimous U.S. Supreme Court decided those cuts were unlawful and could not continue. The high court also remanded the case to a lower court to determine a remedy for hospitals that were negatively affected by the cuts since 2018. Today’s rule does not resolve that repayment matter.

The following statement is attributed to 340B Health President and CEO Maureen Testoni:

“We are very pleased to see that CMS has restored equity to the Medicare outpatient prospective payment system. For 30 years, 340B has supported hospitals in serving patients living with low incomes, and full Medicare payments for those services are essential for the health care safety net. We look forward to working with CMS on compensation for the hospitals that were financially harmed by the unlawful OPPS payment cuts in 2018 to 2022.”

Contact: Richard Sorian at richard.sorian@340bhealth.org or 202-536-2285.