UHS · 10-Q · 2026Q2 · Full report

340B OPPS Payment Changes

UNIVERSAL HEALTH SERVICES INC · 2026-08-07 · Importance 57 · Surprise 50 · In source text

CMS’s 2027 OPPS proposal estimates that the 340B-acquired drug budget-neutrality adjustment will reduce Original Medicare drug payments by $4.55 billion in the first year while increasing non-drug OPPS payments by an equivalent amount. The proposal would increase the annual 340B remedy recoupment offset for non-drug services from 0.5% to 3% beginning in calendar year 2027, excluding hospitals enrolled after January 1, 2018. CMS is also implementing a broader remedy for the $7.8 billion of excess non-drug OPPS payments made during 2018–2022, with the offset expected to continue for approximately 16 years unless the proposed recoupment schedule changes.

Key facts

• In the 2027 OPPS proposed rule, CMS proposed a hospital market basket increase of 3.2% and a productivity adjustment reduction of 0.8% for a net market basket increase of 2.4%, and UHS estimates overall Medicare OPPS update for 2027 will aggregate to a net increase of 8.2% when statutorily required adjustments including a proposed 3.0% reduction for the 340B remedy and an 8.44% favorable 340B Drug Cost Survey budget neutrality adjustment are considered. source
• CMS proposed revising the annual offset percentage for non-drug items and services from 0.5% to 3% effective CY 2027 as part of the 340B Remedy Recoupment proposal, excluding hospitals that enrolled in Medicare after January 1, 2018. source

Impact estimates