CMS' 340B Proposal a 'Hard Pill to Swallow' for Some Hospitals

Healthcare policy advisor Miranda Franco was quoted in an article published by Modern Healthcare regarding the Centers for Medicare and Medicaid Services' (CMS) recent proposal to pay a total of $9 billion to 1,600 340B hospitals by early 2024 after the U.S. Supreme Court determined that the Secretary of Health and Human Services (HHS) overstepped its authority by cutting Medicare reimbursements to 340B hospitals by almost 30 percent from 2018 through Sept. 27, 2022. However, some hospitals are struggling with proposed concessions made in order to maintain budget neutrality, namely the proposal to reduce outpatient reimbursement rates by 0.5 percent over a 16-year period.

“This is not the first proposal to be done in a budget-neutral fashion,” Ms. Franco told Modern Healthcare. “CMS was cautious in spelling out that they have the authority, and that budget neutrality is statutorily required under section 1833 [of the Social Security Act].” She continued on to say, “I think they are trying to read the tea leaves in that hospitals will try to find any loopholes in their statutory authority to implement a budget-neutral policy.” 

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