Court rules 340B cut unlawful

January 3, 2019

On Dec. 27, a federal judge ruled that the Department of Health and Human Services’ (HHS’s) nearly 30-percent cut to Medicare payment rates for many hospitals participating in the 340B drug discount program was unlawful. The American Hospital Association and several plaintiffs filed a lawsuit in September challenging the cuts, which reduced payments to effected hospitals by $1.6 billion per year.

WSHA joined more than 30 other hospital associations to file an amicus (friend of the court) brief in the case, emphasizing the importance of the 340B program, which was enacted by Congress more than 25 years ago to help expand access to life-saving prescription drugs and other drug treatments. The brief details how the cuts harm the communities the program serves.

We are glad to see this ruling, which protects access to care for our most vulnerable communities, including low-income and uninsured individuals. However, what remains unclear at this point is how HHS will remedy the cuts, as the agency had already budgeted the savings from the cuts to be used elsewhere. We will continue to monitor the issue and notify members when we have additional information.


Taya Briley
WSHA Executive Vice President & General Counsel


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