AHA Asks U.S. Supreme Court to Hear Case on 340B Payment Cuts

No. 20-__


IN THE
Supreme Court of the United States


AMERICAN HOSPITAL ASSOCIATION, et al.,
Petitioners,

v.

NORRIS COCHRAN, in his official capacity as the Acting Secretary of Health and Human Services, et al.,
Respondent.


On Petition for a Writ of Certiorari to the United States Court of Appeals for the District of Columbia Circuit


PETITION FOR A WRIT OF CERTIORARI


DONALD B. VERRILLI, JR.
Counsel of Record
JEREMY S. KREISBERG
MUNGER, TOLLES & OLSON LLP
601 Massachusetts Ave. NW
Suite 500E
Washington, DC 20001
(202) 220-1100
Donald.Verrilli@mto.com

Counsel for Petitioners


i

QUESTION PRESENTED

Under federal law, the reimbursement rate paid by Medicare for specified covered outpatient drugs is set based on one of two alternative payment methodologies. If the Department of Health and Human Services (HHS) has collected adequate “hospital acquisition cost survey data,” it sets the reimbursement rate equal to the “average acquisition cost for the drug,” and “may vary” that rate “by hospital group.” 42 U.S.C. 1395l(t)(14)(A)(iii)(I). If HHS has not collected adequate “hospital acquisition cost data,” it must set a reimbursement rate equal to the “average price for the drug,” which is “calculated and adjusted by [HHS] as necessary for purposes of” the statute. 42 U.S.C. 1395l(t)(14)(A)(iii)(II).

The question presented is whether Chevron deference permits HHS to set reimbursement rates based on acquisition cost and vary such rates by hospital group if it has not collected adequate hospital acquisition cost survey data.

See the PDF below for the full legal document.

Related Resources

Guides/Reports
Tax-exempt hospitals are required to publicly report on the ways in which they improve the health of the communities they serve yearly through the IRS Form 990…
Fact Sheets
Public
The COVID-19 pandemic has altered hospitals’ payer mix, which for some hospitals has temporarily lowered their disproportionate share hospital (DSH) percentage…
Special Bulletin
Public
Download the AHA Special Bulletin: CMS Issues Hospital Outpatient/ASC Proposed Rule, Including Modifications to Price Transparency Rule
Advancing Health Podcast
Public
Columbus, Ohio-based Mount Carmel Health System goes beyond the walls of its hospital to serve its community and patients through programs such as Street…
Special Bulletin
Public
The United States Supreme Court this morning rejected the third major challenge to the Affordable Care Act, holding in a 7-2 decision that the challengers did…
Letter/Comment
Public
Amy Bricker President Express Scripts PBM 1 Express Way Saint Louis, MO 63121 Dear Ms. Bricker: