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Breaking 340B: What Happens After Medicare Payment Cut?

 
• By Michael McCaughan

CMS’ reduced payment for drugs purchased at 340B prices went into effect January 1 – but still faces potential legal and legislative challenges. But the real question is what will happen if it sticks?

Silhouette of a doctor walking in a hurry in the hospital corridor.

As of Jan. 1, Medicare is paying hospital outpatient providers a dramatically lower amount for prescription drugs purchased at the 340B discount price: Average Sales Price minus 22.5% rather than the standard ASP+6%.

The Centers for Medicare & Medicaid Services made the change as part of the Hospital Outpatient Prospective Payment System rule...

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