OPPS Comments Focus on Observation Status

Outpatient drugs
Comments generally favored the CMS proposal to reimburse hospitals for separately payable drugs and biologicals without pass-through status at average sales price plus 6%.

The move has the strong support of the AHA, which commented that the change "would improve stability of drug and biological payments" and is less cumbersome that the current system which "involves complex calculations and an annual overhead adjustment in which costs are redistributed from packaged drugs to separately payable drugs."

American Academy of Otolaryngology also supports the change, which "more accurately reflect the actual costs incurred by hospitals in providing and administering drugs and biologics."

CMS is expected to release the final OPPS rule in November.