The Department of Health and Human Services (HHS) recently released its proposed remedy for the unlawful payments cuts for certain hospitals that participate in the 340B drug discount program following the June 2022 unanimous Supreme Court decision.
The HHS proposes to:
- Repay 340B hospitals that were underpaid from 2018 to 2022 via a single lump sum payment.
- Maintain budget neutrality by recouping funds from hospitals that received higher rates for non-drug services from 2018 to 2022. The Centers for Medicare and Medicaid Services (CMS) proposes to apply a negative 0.5% adjustment to the outpatient prospective payment system conversion factor starting in calendar year 2025, with this adjustment continuing until the full repayment amount is offset, which the CMS estimates to be 16 years.
The HHS will accept comments on the proposed remedy through Sept. 5, 2023. The MHA, along with the American Hospital Association and others, will continue to advocate that the CMS repay 340B hospitals as proposed but do so in a non-budget neutral manner. The MHA will submit comments by Sept. 5 and encourages hospitals to submit comments. The MHA will provide hospitals with an estimated impact analysis within the next few weeks.
Members with questions may contact Elizabeth Kutter at the MHA.