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FAH Statement | 340B | Chip Kahn

“Dangerous Precedent” – FAH Leader Reacts to CMS 340B Remedy with Recoupment

FAH President and CEO Chip Kahn released the following statement after CMS released the Remedy for the 340B-Acquired Drug Payment Policy for Calendar Years 2018-2022 Final Rule:

“CMS’s decision to brush aside the Medicare statute and recoup $7.8 billion from hospitals treating Medicare beneficiaries is extremely disappointing. This sets a dangerous precedent by breaking a promise to seniors and their providers that care will be covered.  

“Congress was clear in framing the law setting up the outpatient prospective payment system: The annually determined payment rate is final and hospitals rely on it to deliver care to America’s seniors. The law does not allow Medicare to go backwards, and this statutory predictability and stability of payment is mission critical to sustain patient access to care. 

“Moreover, CMS’s $7.8 billion fee-for-service recoupment through outpatient rate cuts has a shadow Medicare Advantage impact, increasing the total recoupment and most certainly reducing MA plan payments to hospitals.

“In disregarding the law, the final rule erodes the ability of hospitals to deliver lifesaving services that patients depend on, especially in rural areas where many hospitals are already struggling to survive.”