CHA News

Supreme Court Will Hear Case Challenging Medicare’s 340B Payment Cuts

For CFOs, finance & reimbursement staff, government relations staff, pharmacy managers

On July 2, the Supreme Court agreed to hear American Hospital Association v. Becerra, a case that challenges Medicare’s 22.5% payment reduction to hospitals for certain separately payable outpatient drugs acquired under the 340B program.

The cut was first implemented in the 2018 outpatient prospective payment system final rule. The case will be heard in the Supreme Court term that begins this October, with a decision likely next year. CHA participated in an amicus (friend of the court) brief along with approximately 35 state and regional hospital associations requesting that the Supreme Court review this matter.