Late yesterday, the Centers for Medicare & Medicaid Services (CMS) issued the attached final rule updating the outpatient prospective payment system (OPPS) for calendar year 2018. CHA is extremely disappointed that CMS finalized its proposal to significantly cut Medicare payments to hospitals for drugs that are acquired under the 340B Drug Pricing Program. Specifically, CMS will pay separately payable, non pass-through drugs (other than vaccines) purchased through the 340B program at a rate of the average sales price minus 22.5 percent, rather than average sales price plus 6 percent. In a change from the proposed rule, CMS will exclude sole community hospitals in rural areas, prospective payment system-exempt cancer hospitals and children's hospitals from this policy for calendar year 2018. Critical access hospitals are not subject to the OPPS, so they are not impacted by this policy.
CHA will work collaboratively with state and national hospital associations in a coordinated effort to reverse the policy. However, without additional legislative or administrative action, the policy will take effect Jan. 1, 2018, threatening access to care for our most vulnerable patients.
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