CMS pushes deep 340B cuts, site-neutral pay shift in OPPS proposal

CMS's proposed 2027 Outpatient Prospective Payment System rule features a new round of 340B drug payment cuts and advances the agency's push for site-neutral payments. The rule aims to lower Medicare spending by reducing payments for drugs purchased under the 340B discount program for off-campus provider-based departments. Simultaneously, CMS is proposing to further align payment rates for clinic visits across different settings. The final rule will be published in November, with an effective date of January 1, 2027. Legal challenges from hospitals and 340B-covered entities are expected. The comment period closes September 30, 2026.