CMS panel discusses drug payment reform proposals impacting ASCs — Here's what you should know

A CMS advisory panel is opposing a policy that would cut payments by 22.5 percent for drugs providers purchasing under the 340B drug discount program, according to Health Leaders Media.

As it currently stands, the 340B program allows eligible hospitals to buy drugs at a truncated price so they can use those savings to provide additional services to their communities. CMS pays hospitals for separately payable drugs at the standard average sale price as well as an additional 6 percent.

CMS advisory panel members congregated at the Hospital Outpatient Payment panel Aug. 21 to oppose various measures the policy proposes. The panel suggested CMS adhere to its typical budget process, which includes keeping the money in the Outpatient Prospective Payment System through the use of conversion or weighted factors.

The panel also had several other proposals including an option that would withdraw funds from the OPPS and assign them to Part B provider that the revenue reduction most, including ASCs and physicians. The CMS advisory panel also discussed an option which would have CMS putting money back into the Medicare Trust Fund. Despite the panel considering these two options, Jugna Shah, MPH, president and founder of Nimitt Consulting, said they are "very controversial and raises many concerns and opposition."

Ms. Shah said, "There was a unanimous sentiment in the room that it would be egregious for CMS to take the savings out of the OPPS and to give it to other Part B providers or to simply keep the money."

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