California, North Carolina, and New York Will See the Largest Provider Payment Cuts and Beneficiary Savings due to 340B Program Changes
New research from Avalere finds that hospitals in California, North Carolina, and New York will experience the greatest drug payment cuts nationally, ranging from $126M to $62M, as a result of recent changes to the way Medicare pays for 340B drugs. Overall, six states will see drug payment cuts of more than $50M in 2018 (Figure 1). Avalere experts note that other, concurrent Medicare payment increases will offset these cuts for some hospitals, including raising net payments to certain facilities.
