CMS Finalizes 340B Cuts, Revisions to 14-Day Rule

November 1, 2017

The Centers for Medicare & Medicaid Services (CMS) released its final rule on the 2018 Hospital Outpatient Prospective Payment System (HOPPS). ASCO is still assessing the impact of the rule on the oncology community, but an initial review shows that CMS has finalized a proposal to cut reimbursement for separately paid drugs under the 340B Drug Pricing Program (340B) from Average Sales Price (ASP) plus 6 percent to ASP minus 22.5 percent. Rural Sole Community Hospitals, PPS-exempt Cancer Hospitals, and Children’s Hospitals will be exempt from this policy in 2018.

In addition to changes in 340B payments, CMS finalized proposed revisions to the 14-day rule for molecular pathology and advanced diagnostic laboratory tests and highlighted efforts to reduce administrative burden. 

The final rule HOPPS rule became available online on Nov. 1, and is scheduled to be published in the Federal Register on Nov. 13, 2017.

ASCO is conducting a detailed analysis of the rule and will submit comments to CMS during the open comment period. Stay tuned to ASCO in Action for more information when it becomes available.