Bass, Berry & Sims attorney Jeff Davis outlined the new proposed rule issued by the Centers for Medicare & Medicaid Services (CMS) that would reimburse participating hospitals in the 340B drug pricing program. As Jeff explained in the article, under the proposed rule, CMS would issue payments to the 1,600 340B hospitals that received lower payment rates for 340B drugs, which the Supreme Court has since found unlawful. The total payments would be $9 billion.

As part of the rule, CMS also proposed a reduction in payments to all hospitals for non-drug services, starting in 2025 and continuing for 16 years.

CMS has asked for feedback on the proposed rule by September 5, 2023, and hopes to issue a final rule in November of this year. In preparation for the adoption of the proposed rule, Jeff recommended that, “Hospitals should review the Addendum AAA provided by CMS to verify whether they would receive a lump sum payment under the proposed remedy and consider the financial impact of the proposal, if finalized.”

The full article, “CMS Proposes Paying $9 Billion to 340B Hospitals and Reducing Payments to All OPPS Hospitals to Remedy Unlawful 340B Payment Policy,” was published by the AHLA’s Hospitals and Health Systems Practice Group on July 31 and is available online (subscription required).  Jeff also wrote on this topic for a firm publication, which is available here.