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Supreme Court Unanimously Rules in Favor of Hospitals in 340B Decision

The Supreme Court ruled that the HHS’ decision to reduce yearly Medicare payments to hospitals as part of the 340B program was unlawful. The decision was unanimous and written by Justice Brett Kavanaugh.

The case was brought by the American Hospital Association (AHA) and other hospitals, which were challenging the 2018 and 2019 reimbursement rates. The 340B program allows some hospitals and providers serving low-income patients to buy discounted prescription drugs from manufacturers, but then be reimbursed at prevailing rates by insurers. The health care organizations use the savings to provide free services for uninsured patients and cover other costs.  READ MORE

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