{"id":6779,"date":"2018-05-09T05:25:13","date_gmt":"2018-05-09T05:25:13","guid":{"rendered":"http:\/\/www.medicalbillersandcoders.com\/pharmacy-billing-services-blog\/?p=6779"},"modified":"2025-06-11T07:27:46","modified_gmt":"2025-06-11T07:27:46","slug":"physicians-medicare-part-b-payment","status":"publish","type":"post","link":"https:\/\/www.medicalbillersandcoders.com\/pharmacy-billing-services-blog\/physicians-medicare-part-b-payment\/","title":{"rendered":"Physicians To See Increase In Medicare Part B Payment Despite 340B Cuts"},"content":{"rendered":"

The recent research reveals that about 85% of the hospitals in USA will witnessing a raise in their Medicare part B because of the recent changes in the Medicare outpatient payment charges hence; medical coding too get revised.<\/p>\n

The Medicare payment charges came into effect on January 1, 2018 which had revealed a major reimbursement payment cut under 340 B drupartg program. This offers discounted outpatient drugs to health care facilities which are coming under low income patient populations.<\/p>\n

However; it is believed that despite of the 340B cuts; hospitals and physicians are likely to see increase in their Medicare Part B program. It is revealed that physicians will see on an average about 1.5% increase in their total Part B payments.<\/p>\n

Especially the rural hospitals will be benefitting under this facility witnessing a net increase of 2.7% and urban hospitals will see 1.4%.<\/p>\n

However; the 340B program is proposed to allow hospitals use savings from drug discounts to improve care for underserved patients, a recent study found that the discounts only strengthen the incentives for hospitals to supply drugs to patients who have generous insurance coverage.<\/p>\n

The 340B Drug Pricing Program permits hospitals that treat greater proportions of low-income patients to acquire outpatient drugs from manufacturers at a discounted price. The program aims to \u201cstretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.<\/p>\n

Before 2018 OPPS final rule, Medicare used to reimbursed 340B hospitals the average sales price plus 6 percent. CMS\u00a0reduced\u00a0the 340B drug payments to average sales price minus 23 percent for separately payable, non-pass through drugs and biological in the November 2017 OPPS final rule.<\/p>\n

This new payment policy will reduce 340B hospital payments by $1.6 billion. But CMS plans to shift the savings to other parts of the OPPS.<\/p>\n

However, healthcare stakeholders argued that 340 drug payment reductions would prevent hospitals from serving vulnerable patients. An analysis from 340B Health found that all medical billing<\/a> and hospitals surveyed agreed that the payment cuts would impact their ability to deliver healthcare services to low-income and rural patients.<\/p>\n

But the new analysis indicated that hospitals and physicians are positioned to benefit from the OPPS changes, including the 340B payment cuts. And rural hospitals will particularly gain revenue.<\/p>\n

Additionally, the study responded to the concerns that the 340B payment program incentivized contributing hospitals to leverage drug discounts to generate a profit, rather than improving care for vulnerable populations.<\/p>\n

Having an outsourcing medical billing and coding company for 340B compliance services can stretch across all aspects which include:<\/p>\n