340B Lawsuit Not Premature, Hospital Groups Tell Appeals Court

The lower court incorrectly dismissed as premature their lawsuit to prevent a nearly 30% Medicare payment reduction for many hospitals in the 340B Drug Pricing Program, the AHA, Association of American Medical Colleges, America’s Essential Hospitals, Eastern Maine Healthcare Systems, Henry Ford Health System and Adventist Health System's Park Ridge Health told a federal appeals court in a brief filed yesterday. Contrary to the lower court’s finding, the group said they presented their claims to the Department of Health and Human Services as required before filing their court challenge, because they submitted extensive comments supporting their argument that the proposed regulation was unlawful. The HHS secretary expressly addressed and rejected their claims in issuing his final rule, after which the group properly brought their court challenge before the rule’s effective date, the brief adds. The group urged the court to reject the lower court’s ruling and stop the payment cut while the case proceeds.