CMS to Update the Shortage Status of Essential Medicines List Quarterly Beginning October 1, 2024

As a result of the 2025 Medicare Hospital Inpatient Prospective Payment System (IPPS) and Long-Term Care Hospital (LTCH) Prospective Payment System (PPS) final rule, CMS finalized a Separate IPPS Payment for Establishing and Maintaining Access to Essential Medicines. Under this policy, small, independent hospitals of 100 beds or fewer that are not part of a chain organization may receive payment for the IPPS shares of the additional costs to voluntarily establish and maintain a 6-month buffer stock of one or more of 86 essential medicines.

Beginning October 1, 2024, CMS intends to update the shortage status of the list of 86 essential medicines on or about the start of each calendar year quarter, i.e., October 1, January 1, April 1, and July 1. Updates to the list of medicines considered to be in shortage for the purposes of our policy will take effect on the first day of each respective calendar year quarter.

Visit the CMS resource linked above for additional information, including the updated list.

Last Updated Sep 30 , 2024