CMS finalized yesterday a nearly 30 percent cut in Medicare Part B reimbursement to hospitals for 340B physician-administered drugs. The payment cut will go into effect January 1, 2018. Currently, Medicare Part B reimburses 340B hospitals at the average sales price (ASP) plus 6 percent. The final rule reduced reimbursement to ASP minus 22.5 percent. Rural sole community hospitals, children’s hospitals, and certain cancer hospitals are excluded from the payment reduction. Three hospitals groups stated that they are planning to take legal action to challenge the reimbursement cut.