CMS Final Rule Slashes 340B, Makes Major Home Health Changes

As originally proposed, CMS is adopting a policy to reimburse hospitals for Part B drugs at a rate of average sales price minus 22.5 percent, a cut from the current reimbursement rate for Part B drugs to 340B hospitals of average sales price plus 6 percent. Rural Sole Community Hospitals, PPS-exempt Cancer Hospitals, and Children’s Hospitals are exempt from this policy for CY 2018. CMS states it may revisit these policies for CY 2019 and is especially interested in exploring policies addressing the needs of safety net hospitals. Click here for a good summary with links from the Strategic Health Care team.

• The stocks of publicly traded home health companies soared last week after CMS tossed out a controversial new payment system that would have cut Medicare payments to home health providers by $1 billion in 2019. Click here.