A federal judge on Tuesday ordered the Department of Health and Human Services to develop a plan to repair underpayments to 340B hospitals under a rule the Supreme Court has ruled unlawful. France.
In 2018, the Centers for Medicare and Medicaid Services cut 340B reimbursements by nearly 30%, resulting in $1.6 billion in savings. The agency redistributed funds to all hospitals, causing frustration among hospitals participating in 340B. Program 340B reduces drug prices for these hospitals by 25% to 50%, according to the Health Resources and Services Administration.
The Supreme Court ruled in June that HHS did not have the legal authority to make changes to the 340B program that did not determine what the hospital pays for outpatient drugs. Following this decision, CMS proposed to reimburse 340B drugs at the same rate as other drugs, sparking debate among providers.
The American Hospital Association and Essential Hospitals of America, the plaintiff in the lawsuit, expressed displeasure with Judge Rudolph Contreras of the United States District Court for the District of Columbia for delaying HHS. Hospitals lost $340 billion because of the 2018 regulation that asked the court to rescind the rules and make provisions for HHS.
“For more than five years, the Department of Health and Human Services illegally withheld critical funding from 340B hospitals that helped them provide many important benefits to their patients and communities. We are disappointed that the district court has decided to extend this delay by returning this case to the department to determine the appropriate remedy,” said Melinda Hatton, general counsel and secretary at the Association. Hospitals of America, said in a statement.
This is the latest move by the court to address how HHS fixed the payment disparity between 2018 and 2022. In September, Judge Contreras ordered HHS to restore a payment of $340 billion for the time remaining. back of 2022.
