CMS Finalizes Medicare 340B Cut at ASP Minus 28% for 2027
- CMS finalized its 2027 outpatient rule: Medicare will pay 340B participants the average sales price minus 28%, a smaller cut than proposed, which the agency estimates lowers drug spending by about $5.5 billion in 2027.
- The cut is budget neutral, so payments for non-drug services rise by the same amount; imaging without contrast moves to site-neutral rates. The American Hospital Association called it an assault on 340B.
💡 Points Based on public reports
The money moves from 340B hospitals to non-participating ones, not out of the system, so the effect on drugmakers is indirect: less hospital margin may push 340B systems to fight rebate-model changes harder. Manufacturers get no price relief here, but the rule gives them a data point that CMS will cut 340B reimbursement administratively, without Congress.
Medicare will cut billions from 340B, expand site-neutral payments in 2027 ↗