Story perspectives

CMS Targets $6.8 B Savings; Hospitals Fear Service Losses

7/3/2026

Summary

Story summary

CMS announced on July 2, 2026 that the proposal pairs a cut to 340B drug reimbursements with site-neutral payment rules for outpatient imaging, effective at the start of 2027.
The administration estimates the changes will lower Medicare beneficiary payments by $1.1 billion in first year and cut drug spending by $5.7 billion in 2027.
The American Hospital Association and America’s Essential Hospitals warned the cuts could reduce safety-net hospital revenues and threaten community services.

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Story summary

CMS announced on July 2, 2026 that the proposal pairs a cut to 340B drug reimbursements with site-neutral payment rules for outpatient imaging, effective at the start of 2027.
The administration estimates the changes will lower Medicare beneficiary payments by $1.1 billion in first year and cut drug spending by $5.7 billion in 2027.
The American Hospital Association and America’s Essential Hospitals warned the cuts could reduce safety-net hospital revenues and threaten community services.