Medicare proposes cuts to hospital payments for drugs and imaging under new outpatient rule

Medicare's Centers for Medicare & Medicaid Services released a proposed rule that would lower the amounts hospitals receive for certain prescription drugs and imaging services provided to Medicare beneficiaries.

The proposal targets the 340B drug discount program, reducing the discounts hospitals can claim, which the agency says will save federal spending but is expected to strain hospital finances.

The rule also reinforces a site‑neutral payment approach that many hospitals have opposed, as it could further erode revenue from outpatient services.

Stakeholders have submitted tens of thousands of comments, reflecting strong opposition from the hospital industry and concerns about patient access.