CMS Cuts 2018 340B Reimbursements to ASP Minus 22.5 Percent

November 6, 2017

The Centers for Medicare and Medicaid Services reduced the amount Medicare Part B will pay hospitals for purchasing drugs through the 340B discount program — cutting reimbursements down to the average sales price minus 22.5 percent, rather than the previous ASP plus 6 percent — for the 2018 calendar year.

The expected $1.6 billion in savings generated from the final rule will be redistributed to other outpatient payments for items and services, and will help lower out-of-pocket drug costs for beneficiaries, CMS said. Drugs not purchased under the 340B drug program will continue to be paid at a rate of ASP plus 6 percent.

CMS said the move more closely aligns payments with the hospital acquisition costs for drugs and biologics purchased from manufacturers at the substantial discounts required under the 25-year-old program.

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