Premier Comments on CMS Proposed Remedies for Reversing 340B Payment Cuts

Premier submitted comments on CMS’ proposed rule outlining its remedy for reversing its 340B-acquired drug payment policy, following last year’s Supreme Court ruling that CMS did not have the authority to pay for drugs at ASP minus 22.5 percent. In its comments, Premier urges CMS to adopt policies that ensure hospitals and other 340B entities are appropriately compensated for past 340B payment shortfalls and can fulfill Congressional intent of the program, which is to expand care for vulnerable populations.

Consistent with past public comments, Premier expressed strong support for CMS’ proposal to make a lump sum payment to 340B hospitals for the amounts they are owed based on the difference between ASP-22.5 percent and ASP+6 percent. However, Premier strongly opposed CMS’ proposal to offset these payments in a budget-neutral manner by reducing providers’ reimbursement for non-drug items and services by 0.5 percent over 16 years, beginning in 2025. In its letter, Premier detailed how this proposal is inconsistent with the law and CMS’ longstanding past precedent regarding application of budget neutrality adjustments.