U.S. District Court Judge Rudolph Contreras will hear arguments Dec. 21 in AHA's lawsuit to prevent the Centers for Medicare & Medicaid Services from reducing Medicare payments for hospital outpatient drugs under the 340B drug savings program by nearly 30%. AHA is joined in the lawsuit by the Association of American Medical Colleges and America's Essential Hospitals, as well as Eastern Maine Healthcare Systems in Brewer, ME, Henry Ford Health System in Detroit and Adventist Health System's Park Ridge Health in Hendersonville, NC. In the lawsuit, the groups argue that the administration's attempt to undermine 340B savings in the outpatient prospective payment system final rule for calendar year 2018 is unlawful and exceeds the Secretary of Health and Human Services' authority under Medicare law and the Public Health Services Act. HHS has until Dec. 1 to file its arguments in favor of dismissing the case. There will be other briefs with the final HHS brief due on Dec. 15. The cuts are scheduled to take effect Jan. 1, unless the district court judge enjoins the rule.

Related News Articles

Headline
The Department of Health and Human Services Feb. 5 in a court filing said it would scrap its current 340B Rebate Model Pilot Program and potentially restart…
Headline
The Coalition to Strengthen America’s Healthcare Feb. 5 released a new research brief examining the impact of proposed site-neutral payment policies on…
Headline
A new AHA blog published Feb. 3 discusses how the 340B Drug Pricing Program serves as an effective solution to some of the nation’s most persistent and…
Blog
Public
Many Americans may be unaware that the services they rely on every day through their local hospital are supported by a program called the 340B Drug Pricing…
Headline
The Department of Labor has issued a proposed rule to improve transparency of fees collected by pharmacy benefit managers. The rule requires PBMs to disclose…
Headline
The Department of Health and Human Services Office of Inspector General Jan. 27 released a bulletin addressing how direct-to-consumer drug programs can sell…