UHS · 10-Q · 2026Q3 · Full report

340B OPPS Payment Changes

UNIVERSAL HEALTH SERVICES INC · 2026-11-06 · Importance 71 · Surprise 82 · In source text

CMS’s remedy for the 2018–2022 340B payment policy requires a $7.8 billion budget-neutrality adjustment through lower future OPPS payments. CMS began reducing the OPPS conversion factor by 0.5% in calendar year 2026, with the adjustment expected to continue for approximately 16 years. In the 2027 OPPS final rule, CMS proposed increasing the reduction from 0.5% to 2%, which could further reduce payments for non-drug items and services.

Key facts

• CMS estimates the 2027 340B-acquired-drug budget neutrality adjustment will reduce Original Medicare drug payments by $4.65 billion in its first year, with equivalent OPPS payment increases for non-drug services. source
• CMS will increase the annual 340B remedy offset percentage for non-drug items and services from 0.5% to 2% effective CY 2027, excluding hospitals enrolled in Medicare after January 1, 2018. source
• CMS plans to increase the 340B remedy reduction above 0.5% in CY 2027; the reduction will remain in effect until estimated payment reductions reach $7.8 billion, while the revised recoupment duration is undetermined. source
• CMS reduced the OPPS conversion factor by 0.5% starting in CY 2026 for an estimated 16 years to make a $7.8 billion 340B budget-neutrality adjustment; CMS proposed increasing the reduction from 0.5% to 2%. source

Impact estimates