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06/22/2022

Understanding the Supreme Court Ruling on 340B

The Supreme Court ruling strikes down Medicare payment cuts.

On June 15, the U.S. Supreme Court sided with hospital groups in a case challenging the 340B payment cuts by the U.S. Department of Health and Human Services (HHS) over the past several years. 

The American Hospital Association (AHA) and other interested parties challenged the 2018 and 2019 reimbursement rates in federal court in the case of AHA v. Becerra.

The case centered around whether the Centers for Medicare & Medicaid Services (CMS) has the authority to make cuts to the program under its Medicare Outpatient Prospective Payment System (OPPS). Under the payment rule, HHS cut the reimbursement rate for covered drugs by 28.5 percent in 2018, but it later lowered the reimbursement rate cut to 22.5 percent, which was essentially $1.6 billion annually.  READ MORE

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