On Sept. 28, a federal district court ruled that the Department of Health & Human Services (HHS) must immediately halt the department’s cuts to outpatient reimbursement rates for the remainder of 2022 for certain hospitals that participate in the 340B Drug Pricing Program. HHS will begin restoring a payment rate of average sales price plus 6% for 340B drug claims in about two weeks.
Earlier this year, the U.S. Supreme Court ruled in favor of the American Hospital Association in its lawsuit against the department challenging HHS’ reduction of prescription drug reimbursement rates for 340B hospitals for 2018 and 2019. The Supreme Court left it to the lower court to determine how the Centers for Medicare & Medicaid Services would repay hospitals and when the agency would transition away from the pay cuts.
CHA, along with more than 30 other state and regional hospital associations, submitted amicus briefs first urging the Supreme Court to grant review in this case and then supporting AHA’s challenge to HHS’ rate reduction.