US Supreme Court Hears Oral Arguments Challenging Cuts to 340B Hospitals

December 1, 2021

Yesterday, the US Supreme Court heard oral arguments from the American Hospital Association and other hospital plaintiffs challenging Medicare payment cuts to hospitals participating the 340B drug program. Based on priorities established by its membership, WSHA participated in an amicus brief supporting the hospitals. Beginning with the 2018 OPPS rule, the Centers for Medicare and Medicaid Services (CMS) cut the Medicare outpatient payments for 340B drugs by about 30 percent for most 340B hospitals paid under the prospective patient system. Hospitals challenged the cuts on the basis that CMS did not follow the process dictated by Congress for calculating the amount of the rate adjustment. The payment cuts were initially overturned by a district court but were affirmed and reinstated following an appeals court decision. It will likely be months before the court releases its verdict. (Andrew Busz,


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