A change in Medicare Part B payment status for "an unusually high" number of drugs in 2019 led to "substantially" lower payments to 340B hospitals, congressional Medicare advisers said this week.

Medicare’s 340B Drug Reimbursement Cuts in 2019 Were Exacerbated by Change in Drugs’ Payment Status

Medicare Part B drug payments to 340B hospitals “declined substantially” in 2019 because the payment status of “an unusually high number of drugs” changed that year, congressional Medicare advisers said in a report yesterday.

The change—from “pass-through status” to “separately payable non-pass-through status”—meant that more drugs in 2019 than the year before were subject to the U.S. Centers for Medicare & Medicaid Services’ (CMS) nearly 30 percent reduction in Part B drug reimbursement for 340B disproportionate share hospitals, urban sole community hospitals, and rural referral centers.

Medicare Part B drug payments to 340B hospitals “declined substantially” in 2019 because the payment status of “an unusually high number of drugs” changed that year, congressional Medicare advisers said in a report yesterday.

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