CMS proposes lower Medicare payments for 340B drugs at hospital outpatient departments
CMS proposed a 2027 Medicare rule that would reduce payments for certain 340B-acquired drugs at hospital outpatient departments, with the agency saying the change could lower costs for some beneficiaries if finalized.
CMS on July 2 proposed a 2027 Medicare payment rule that would update hospital outpatient and ambulatory surgical center payment policies and rates. The proposal would reduce payments for certain 340B-acquired drugs given in hospital outpatient departments, which CMS says would better align Medicare reimbursement with hospitals’ acquisition costs and lower costs for people with Original Medicare.
CMS says the proposal would affect about 3,500 hospitals and 6,400 ASCs. It estimates $1.15 billion in beneficiary drug savings and $4.55 billion in taxpayer drug savings in 2027, while increasing non-drug outpatient payments by an equivalent amount to keep the overall proposal budget neutral.
The Federal Register public-inspection notice says the proposed rule is scheduled for publication on July 7, 2026, and CMS says it will accept public comments for 60 days after publication. For now, the policy is only a proposal.
Sources
- CMS press release: CMS Acts to Strengthen Care Quality, Cut Drug Costs, and Slash Out-of-Pocket Expenses for Medicare Beneficiaries
- Federal Register public inspection notice: Medicare hospital outpatient and ASC proposed rule
- Associated Press report on CMS's proposed Medicare drug markup rule
- American Hospital Association response to the CMS proposal
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