CMS finalizes 340B payment cuts and expanded site-neutral Medicare payments

CMS finalized its 2027 outpatient payment rule, cutting Medicare payments for drugs acquired through the 340B program and expanding site-neutral payments. Hospital outpatient departments and ambulatory surgery centers will receive a 2.3% payment increase next year, below the 2.4% increase regulators proposed.

Under the rule, Medicare will reimburse 340B participants at the drug’s average sales price minus 28%. CMS said the change would reduce drug spending by about $5.5 billion next year. The rule also sets the same payment rate for imaging services without contrast at hospital outpatient departments and freestanding physician offices.

CMS estimates the site-neutral policy will save taxpayers and beneficiaries over $9 billion over a decade. The American Hospital Association said the payment increase would not address hospitals’ financial challenges and warned that the 340B changes would add stress.