A federal court has ruled it’s up to the HHS to determine how to repay hospitals enrolled in the 340B drug discount program after years of underpayments, sparking concern from hospital groups.
The court’s ruling on Tuesday is the latest update in a yearslong legal dispute between safety net hospitals and the government over payment rates, that wound its way up to the Supreme Court. The dispute originated in 2018, when the CMS changed the rate of payments in 340B from the average sales price of the drugs plus 6% to the average sales price minus 22.5%. The cuts amounted to some $1.6 billion annually for 340B hospitals.
