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December 14, 2017

CMS Releases Guidance on Implementation of Medicare Part B Rate Reductions for 340B Drugs

On December 13, 2017, CMS released guidance on its rate reduction for 340B drugs under Medicare Part B. The guidance confirms that beginning January 2018, Medicare will subtract 22.5% from the adjusted sales price when paying for 340B drugs furnished to a Medicare beneficiary by an otherwise non-exempt hospital. The agency also established two modifiers for identifying 340B drugs. Providers will be required to report these modifiers on their OPPS claims beginning in January 2018.