United States Court Of Appeals For The District Of Columbia Circuit: Decision In American Hospital Association, Et. Al. v. Alex Michael Azar, II, Et. Al.

On July 31, 2020, a federal appeals court ruled that the Department of Health and Human Services (HHS) can implement cuts of 28.5% to the 340B Drug Pricing Program for drugs delivered through hospital outpatient services under Medicare Part B. The program requires pharmaceutical manufacturers to provide discounts on drugs to safety net hospitals (340B hospitals) in exchange for Medicaid coverage of the drug. A group of hospitals and hospital associations sued HHS to challenge the reimbursement cut.  In the complaint, American Hospital Association, et al., v. Azar, et al., the plaintiffs said that HHS had wrongly interpreted the . . .