--- title: "340B MA Underpayments: Current Settlement Offers & Other Happenings" description: "CMS Releases Proposed Rule: Remedy for the 340B-Acquired Drug Payment Policy for Calendar years 2018-2022." image: https://public.govdataservices.com/hubfs/A%20male%20doctor%20in%20coat%20in%20front%20of%20a%20blue%20wall%20holding%20a%20pill%20between%20his%20fingers%20with%20lines%20and%20white%20crosses%20in%20circles-1.jpeg --- [Skip to content](https://public.govdataservices.com/the-scoop/340b-ma-underpayments-current-settlement-offers#main-content) Close - [Services](https://public.govdataservices.com/services-page) - [Medicare DSH](https://public.govdataservices.com/medicare-dsh) - [SSI Realignment](https://govdataservices-21378692.hs-sites.com/medicare-dsh#SSI) - [340B MA Underpayments](https://public.govdataservices.com/340b-medicare-advantage-underpayments) - [Medicare Bad Debt](https://public.govdataservices.com/medicare-bad-debt) - [Worksheet S-10 Uncompensated Care](https://public.govdataservices.com/s-10) - [Transfer DRG](https://public.govdataservices.com/transfer-drg) - [Medicare ID & Shadow Billing](https://public.govdataservices.com/medicare-id-shadow-billing) - [MBI ID Finder](https://public.govdataservices.com/mbi-id-finder) - [MIDaS Insurance ID](https://public.govdataservices.com/midas-insurance-id) - [Annual Wellness Visit](https://public.govdataservices.com/annual-wellness-visit) - [Eligibility & Other Services](https://public.govdataservices.com/eligibility-and-other) - [Bundle & Save](https://public.govdataservices.com/bundle-and-save) - [Demo](https://public.govdataservices.com/demo-diagnostics-review) - Resources - [Links](https://public.govdataservices.com/links) - [Blog](https://public.govdataservices.com/the-scoop) - [Contact Us](https://public.govdataservices.com/contact-us) SEARCH [Client Login](https://www.govdataservices.com/gdswebsite/DesktopDefault.aspx) [![GDSlogo\_avenir\_2](https://public.govdataservices.com/hs-fs/hubfs/GDSlogo_avenir_2.png?width=1194&height=340&name=GDSlogo_avenir_2.png)](https://public.govdataservices.com/) - [Services](https://public.govdataservices.com/services-page) - [Medicare DSH](https://public.govdataservices.com/medicare-dsh) - [SSI Realignment](https://govdataservices-21378692.hs-sites.com/medicare-dsh#SSI) - [340B MA Underpayments](https://public.govdataservices.com/340b-medicare-advantage-underpayments) - [Medicare Bad Debt](https://public.govdataservices.com/medicare-bad-debt) - [Worksheet S-10 Uncompensated Care](https://public.govdataservices.com/s-10) - [Transfer DRG](https://public.govdataservices.com/transfer-drg) - [Medicare ID & Shadow Billing](https://public.govdataservices.com/medicare-id-shadow-billing) - [MBI ID Finder](https://public.govdataservices.com/mbi-id-finder) - [MIDaS Insurance ID](https://public.govdataservices.com/midas-insurance-id) - [Annual Wellness Visit](https://public.govdataservices.com/annual-wellness-visit) - [Eligibility & Other Services](https://public.govdataservices.com/eligibility-and-other) - [Bundle & Save](https://public.govdataservices.com/bundle-and-save) - [Demo](https://public.govdataservices.com/demo-diagnostics-review) - Resources - [Links](https://public.govdataservices.com/links) - [Blog](https://public.govdataservices.com/the-scoop) - [Contact Us](https://public.govdataservices.com/contact-us) [Client Login](https://www.govdataservices.com/gdswebsite/DesktopDefault.aspx) [Chris Cusimano](https://public.govdataservices.com/the-scoop/author/chris-cusimano) Jul 11, 2024, 3:57:13 PM 2 min read # 340B MA Underpayments: Current Settlement Offers & Other Happenings [Previous](https://public.govdataservices.com/the-scoop/scotus-grants-writ-of-certiorari-to-hear-advocate-christ-case) [Next](https://public.govdataservices.com/the-scoop/cms-ffy-2025-skilled-nursing-final-rule) Recently, a Medicare Advantage (MA) plan began issuing settlement offers to hospitals for 340B Underpayments and separately some hospitals have independently reached settlement for their 340B Underpayments. Active pursuit of damages by hospitals including demand letters, activation of arbitration clauses, threat of litigation, and/or factors within the MA plan’s portfolio may have all contributed to these developments. GDS recommends that hospitals seek legal counsel to determine if taking some action such as sending and documenting a demand letter may protect their claims to damages from expiring in accordance with local or state law. Settlement offers from MA plans should be reconciled to the actual payment data. Do not get caught settling for less than the actual damages incurred from underpayments! MA settlement offers may be for much less than the underpayments that occurred. Any current or future offer for settlement could have a timeline to accept or decline the offer. Hospitals who took early action and outsourced production of reports documenting damages to third parties or whom had third parties verify internal reports are in a strong position to evaluate settlement offers. Providers who chose to “wait and see” may be scrambling to produce valid reports or to find a qualified party such as GDS to quantify their damages. Providers who "go it alone" should be prepared for their internal employees or report writers to be deposed under oath and to possibly testify in front of Magistrates or at jury trial on the detailed and complicated outpatient payment profiles. Most providers should have 340B Underpayment damages quantified and documented by a third party or at least have their internal reports reviewed. Contact Adam Blackwell at [adamblackwell@govdataservices.com](mailto:adamblackwell@govdataservices.com)for further discussion or to schedule a complimentary initial consultation on the status of 340B MA Underpayment efforts. ![avatar](https://public.govdataservices.com/hs-fs/hubfs/chriscusimano.jpg?width=290&name=chriscusimano.jpg) #### [Chris Cusimano](https://public.govdataservices.com/the-scoop/author/chris-cusimano) ## RELATED ARTICLES ### [Chris Cusimano Jul 10, 2023, 12:12:11 PM 1 min read CMS Releases Proposed Rule: Remedy for the 340B-Acquired Drug Payment Policy for Calendar years 2018-2022 CMS Releases Proposed Rule: Remedy for the 340B-Acquired Drug Payment Policy for Calendar years 2018-2022. Start Reading](https://public.govdataservices.com/the-scoop/remedy-for-the-340b-acquired-drug-payment-policy-for-calendar-years-2018-2022) ### [Chris Cusimano Jan 11, 2023, 1:30:00 PM 2 min read District Court Rule January 10, 2023, to Allow HHS to Use Its Discretion to Determine How to Remedy the 340B Underpayments from January 1, 2018, through September 27, 2022 Tuesday, January 10, 2023, the District Court for the District of Columbia ruled to allow HHS to use its discretion to ... Start Reading](https://public.govdataservices.com/the-scoop/district-court-rule-january-10-2923-to-allow-hhs-to-use-its-discretion-to-determine-how-to-remedy-the-340b-underpayments-from-january-1-2018-through-se-1681184669749) ### [Chris Cusimano Feb 23, 2026, 2:40:14 PM 1 min read 340B Hospitals: OPPS Drug Acquisition Cost Survey is Live GDS noted in our 11/24/2025 blog that the 2026 OPPS Final Rule finalized CMS’s intent to conduct acquisition cost surveys for ... Start Reading](https://public.govdataservices.com/the-scoop/340b-hospitals-opps-drug-acquisition-cost-survey-is-live) [![gds-logo-1](https://public.govdataservices.com/hs-fs/hubfs/gds-logo-1.png?width=500&height=150&name=gds-logo-1.png)](https://public.govdataservices.com/) **Get in Touch** Government Data Services 3200 W. Market St., Ste. 102 Akron, OH 44333-3324 Government Data Services 117 Seaboard Lane, F270 Franklin, TN 37067 Toll Free: (800) 370-7397 Email: [info@govdataservices.com](mailto:info@govdataservices.com) ![soc](https://public.govdataservices.com/hs-fs/hubfs/soc.jpg?width=44&name=soc.jpg)[![digicert](https://public.govdataservices.com/hs-fs/hubfs/digicert.png?width=117&name=digicert.png)](https://seal.digicert.com/seals/popup/?tag=VtfrmabA&url=www.govdataservices.com) © 2026 - Government Data Services LLC. All rights reserved - [Site Use Agreement](https://public.govdataservices.com/terms-of-use) - [Confidentiality and Privacy](https://public.govdataservices.com/privacy) ```json { "@context" : "http://schema.org", "@type" : "Organization", "knowsLanguage" : "en", "name" : "", "url" : "https://public.govdataservices.com/the-scoop/340b-ma-underpayments-current-settlement-offers" } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "abstract" : "CMS Releases Proposed Rule: Remedy for the 340B-Acquired Drug Payment Policy for Calendar years 2018-2022.", "author" : { "@type" : "Person", "name" : "Chris Cusimano" }, "dateModified" : "July 11, 2024 7 PM", "datePublished" : "July 11, 2024 7 PM", "headline" : "340B MA Underpayments: Current Settlement Offers & Other Happenings", "image" : "https://21378692.fs1.hubspotusercontent-na1.net/hubfs/21378692/A%20male%20doctor%20in%20coat%20in%20front%20of%20a%20blue%20wall%20holding%20a%20pill%20between%20his%20fingers%20with%20lines%20and%20white%20crosses%20in%20circles-1.jpeg", "inLanguage" : "en", "keywords" : "[340B, Legal News, Revenue Cycle Management]", "mainEntityOfPage" : { "@type" : "WebPage" }, "name" : "340B MA Underpayments: Current Settlement Offers & Other Happenings", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "" }, "text" : "Recently, a Medicare Advantage (MA) plan began issuing settlement offers to hospitals for 340B Underpayments and separately some hospitals have independently reached settlement for their 340B Underpayments. Active pursuit of damages by hospitals including demand letters, activation of arbitration clauses, threat of litigation, and/or factors within the MA plan’s portfolio may have all contributed to these developments. GDS recommends that hospitals seek legal counsel to determine if taking some action such as sending and documenting a demand letter may protect their claims to damages from expiring in accordance with local or state law. Settlement offers from MA plans should be reconciled to the actual payment data. Do not get caught settling for less than the actual damages incurred from underpayments! MA settlement offers may be for much less than the underpayments that occurred. Any current or future offer for settlement could have a timeline to accept or decline the offer. Hospitals who took early action and outsourced production of reports documenting damages to third parties or whom had third parties verify internal reports are in a strong position to evaluate settlement offers. Providers who chose to “wait and see” may be scrambling to produce valid reports or to find a qualified party such as GDS to quantify their damages. Providers who \"go it alone\" should be prepared for their internal employees or report writers to be deposed under oath and to possibly testify in front of Magistrates or at jury trial on the detailed and complicated outpatient payment profiles. Most providers should have 340B Underpayment damages quantified and documented by a third party or at least have their internal reports reviewed. Contact Adam Blackwell at adamblackwell@govdataservices.com for further discussion or to schedule a complimentary initial consultation on the status of 340B MA Underpayment efforts.", "url" : "https://public.govdataservices.com/the-scoop/340b-ma-underpayments-current-settlement-offers", "wordCount" : "338" } ``` ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Chris Cusimano", "url" : "https://public.govdataservices.com/the-scoop/author/chris-cusimano" }, "dateModified" : "2024-07-11T19:58:37.751Z", "datePublished" : "2024-07-11T19:57:13.000Z", "headline" : "340B MA Underpayments: Current Settlement Offers & Other Happenings", "image" : [ "https://public.govdataservices.com/hubfs/A%20male%20doctor%20in%20coat%20in%20front%20of%20a%20blue%20wall%20holding%20a%20pill%20between%20his%20fingers%20with%20lines%20and%20white%20crosses%20in%20circles-1.jpeg" ], "mainEntityOfPage" : { "@id" : "https://public.govdataservices.com/the-scoop/340b-ma-underpayments-current-settlement-offers", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject" } } } ```