Closing The Spread: 340B Providers Face Sharp Cuts Under Medicare Proposal

Medicare payments to hospitals for drugs provided under the 340B program would be reduced to average sales price (ASP) minus 22.5%, which CMS believes is more closely aligned with the discounted price obtained by the providers.

Dollar sign made with drug pills

The Centers for Medicare and Medicaid Services plans to significantly lower Medicare Part B payments to hospitals for prescription drugs provided on an outpatient basis under the 340B drug discount program to help lower costs to the program and for beneficiaries.

The agency proposes reducing Medicare's drug payments to providers from the current average sales price (ASP) plus 6% to ASP minus 22.5% in its 2018 Hospital Outpatient Prospective Payment System...

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