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CMS Publishes Calendar Year 2023 Hospital Outpatient Payment Final Rule and Addresses 340B Drug Payments, Organ Acquisition Costs, Pandemic-Related Payment Changes, Rural Hospitals

On November 1, 2022, the Centers for Medicare & Medicaid Services (“CMS”) published the final rule for the calendar year (“CY”) 2023 outpatient prospective payment system (“OPPS”) and the ambulatory surgical center (“ASC”) payment system. In August 2022, following publication of the proposed rule, we circulated an Alert summarizing key aspects of CMS’s proposals. Below is a short summary of what CMS determined regarding each of the following topics in the final rule: A. Payment for 340B Drugs; B. Reimbursement for Organ Acquisition Costs; C. Changes Relating to COVID-19 Pandemic, including Updates to the Conversion Factor, Claims Data used for Ratesetting, a Payment Adjustment for the Purchase of Approved Surgical N95 Respirators, and Mental Health Telehealth Services; D. Use of Information Related to Hospital Transactions; and E. Policies for a New Category of Rural Hospitals.

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New CMS Guidance Clarifies Medicare Coverage for Clinical Trial Services


Time to Read: 1 minutes Practices: Health Care

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The Centers for Medicare & Medicaid Services (CMS) issued guidance earlier this week, clarifying Medicare coverage for services provided in clinical trials. Specifically, CMS is applying to clinical trials the general Medicare principle that Medicare will not pay for services for which neither the beneficiary nor any other party has any legal obligation to pay. The application of this principle calls into question Medicare coverage for clinical trial services when a sponsor has agreed to pay for the services to the extent the services are not covered by insurance (which language has previously raised concerns under Medicare secondary payer rules in the research injury context). CMS does, however, affirm Medicare coverage for clinical trial services when a provider waives charges or the collection of beneficiary cost-sharing amounts (such as co-pays) for such services for patients who are indigent. Finally, CMS reminds providers that payment by a research sponsor for beneficiary cost-sharing amounts in a clinical trial raises fraud and abuse concerns.

Providers involved in clinical trials and research sponsors should consider their clinical trial funding, budgeting and/or billing practices in light of the new CMS guidance.

If you have any questions about this guidance, please contact Eve Brunts, Terry Coleman or your usual Ropes & Gray attorney. 

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