Judge: HHS gets ‘first crack’ at fixing 340B cuts

A federal district court judge yesterday ruled that the Department of Health and Human Services would get "first crack at crafting appropriate remedial measures" to the nearly 30 percent cuts to Medicare payments affecting certain hospitals that participate in the 340B Drug Pricing Program. He also held that, like the 2018 cuts, the 2019 cuts to 340B hospitals were unlawful. The judge said that he expected HHS to “act expeditiously to resolve these issues” and required HHS to report back to him on or before Aug. 5 with its remedy proposal.
 
In a statement, the AHA, Association of American Medical Colleges and America’s Essential Hospitals said, “America’s 340B hospitals are pleased with the District Court’s decision and urge HHS to follow the judge’s directive to promptly resolve the harm caused by its unlawful cuts to Medicare reimbursement for certain 340B hospitals.” The groups also urged HHS to “promptly comply with the judge’s ruling and restore to 340B hospitals all funds that have been unlawfully withheld.” 

A federal judge Dec. 27 ruled in favor of the AHA and hospital plaintiffs that HHS's nearly 30 percent cut of 2018 Medicare payment rates for many hospitals in the 340B program was unlawful. The lawsuit was brought by the AHA, AAMC, AEH and three hospital plaintiffs.