340B Advocacy Alliance Bulletin: Appeals Court Declines to Rehear 340B, Site-Neutral Cases

October 19, 2020

The full U.S. Court of Appeals for the District of Columbia Circuit Oct. 16 denied AHA’s request to reconsider two decisions from this summer that upheld the Centers for Medicare & Medicaid Services’ cuts to payments for 340B drugs and for off-campus hospital outpatient clinic visits.
 
Specifically, the full U.S. Court of Appeals declined to reconsider a July 31 decision by a three-judge panel that upheld the authority of CMS to lower by nearly 30% 2018 and 2019 Medicare outpatient prospective payment system drug payments for certain hospitals participating in the 340B Drug Pricing Program. A district court had previously ruled in AHA’s favor, finding that the payment reductions were invalid. In addition, the court said it will not rehear a July 17 decision by a three-judge panel that upheld the authority of the Department of Health and Human Services to reduce payments for hospital outpatient services furnished in off-campus provider-based departments grandfathered under the Bipartisan Budget Act of 2015. A lower court twice found that HHS exceeded its statutory authority when it reduced these payments.
 
The AHA is deeply disappointed in the court’s decisions in both of these cases, which conflict with Congress’ clear intent and defer to the government’s inaccurate interpretation of the law. The association is evaluating all of its options to repeal these unlawful cuts, including petitioning the Supreme Court to hear the cases.

Related Resources

Special Bulletin
Public
  Sign In to Download the AHA Special Bulletin: CMS Issues Hospital Outpatient/ASC Final Rule, Including Maintenance of 340B Cuts  
Special Bulletin
Public
The Centers for Medicare & Medicaid Services (CMS) Nov. 20 released an interim final rule implementing the Most Favored Nation (MFN) Model, a new payment…
Letter/Comment
Public
The AHA on Friday sent a letter to the Health Resources and Services Administration’s Office of Pharmacy Affairs urging the agency to order drug manufacturers…
Letter/Comment
Public
In a letter to Senator Lamar Alexander and Representative Greg Walden, AHA expresses strong support for the 340B Drug Pricing Program.
Action Alert
Member
Please contact your representatives today and ask them to sign onto a bipartisan “Dear Colleague” letter to Department of Health and Human Services Secretary…
Action Alert
Member
Please contact your representatives today and ask them to sign onto a bipartisan “Dear Colleague” letter to Department of Health and Human Services Secretary…