Medicare Finalizes 340B Payment Cuts and Site-Neutral Rule for 2027

· Health · United States

U.S. regulators finalized a rule Wednesday that would cut billions of dollars in payments for drugs under the controversial 340B program and equalize some payments between care sites starting in 2027. The 340B program requires drugmakers to give discounts to hospitals and clinics serving low-income patients, and the changes affect how those discounted drugs are reimbursed. Hospitals strongly opposed the rule. Site-neutral policies aim to pay similar rates for the same services regardless of whether they are delivered in a hospital outpatient department or a freestanding clinic, a long-running fight over Medicare spending.

Why it matters：The rule shifts billions of dollars between hospitals, clinics and drugmakers, setting the financial terms for discounted drug purchasing and site-of-care economics in the U.S. for years.

Key points

  • The rule cuts billions in 340B drug payments and takes effect in 2027.
  • It also equalizes some payments between different care sites.
  • Hospital groups strongly opposed the finalized rule.

Sources (original reporting)

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