Could CMS Follow Up 340B Court Victory with Deeper Cuts for Hospitals?
Yesterday’s federal appeals court ruling upholding the Trump administration’s nearly 30 percent cut in 340B hospitals’ Medicare Part B drug reimbursement raises the question of what to expect in the short and long term when it comes to hospital payments. One possibility is that the U.S. Centers for Medicare & Medicaid Services (CMS) could forge ahead with even deeper cuts starting in 2021. It might do so in its Medicare Hospital Outpatient Prospective Payment System (OPPS) proposed regulation for next year, which could come as early as Monday.
The U.S. Court of Appeals for the District of Columbia Circuit ruled 2-1 Friday that CMS had statutory authority to impose a 28.5 percent cut to Medicare Part B drug reimbursement rates for 340B hospitals in 2018 and 2019. The reduction also is in place this year.
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