The Biden administration's next challenge: Paying for discount drug mistakes

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The Biden administration's next challenge: Paying for discount drug mistakes
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The Biden administration has yet to figure out how it will reimburse hospitals for as much as $10 billion in unlawful cuts to Medicare outpatient drug payments.

Four months after it lost a high-profile dispute at the Supreme Court, the Biden administration has yet to figure out how it will reimburse hospitals for as much as $10 billion in unlawful cuts to Medicare outpatient drug payments.

Repaying them without tapping into new funds would result in lower Medicare payments to 80% of all hospitals next year, according toFurther complicating matters, a lower court ruled last month that CMS had to stop discount drug program payment cuts for 2022.Hospitals say that new federal spending should be used to rectify the improper cuts.

CMS under Medicare law is supposed to balance out reimbursements for outpatient drugs without raising government spending, experts say. The $10 billion due for five years of outlawed cuts is "a huge amount of money to put back into the payment system outside of some additional form of congressional appropriation," Cook said.

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