News Report | August 24, 2020
Federal Court Upholds Nearly 30% 340B Drug Reimbursement Rate Cut To Hospitals
On July 31, 2020, a federal appeals court ruled that the Department of Health and Human Services (HHS) can cut Medicare Part B outpatient drug rates by 28.5% to hospitals participating in the 340B Drug Pricing Program. Under this program pharmaceutical manufacturers participating in Medicaid agree to provide outpatient drugs to covered entities (safety net hospitals called 340B hospitals) at significantly reduced prices.
Through this program, for more than 25 years, hospitals obtained the covered drugs at a 20% to 50% discount from the average sales price (ASP). HHS reimbursement structures at the time did not account for the . . .