Federal Judge Stops 340B-Related Payment Cuts / by AzHHA

Debbie Johnston, Senior Vice President of Policy Development

A federal judge December 27th ruled in favor of the American Hospital Association, Association of American Medical Colleges, America’s Essential Hospitals and hospital plaintiffs saying that the Department of Health and Human Services “adjustment” by nearly 30 percent of 2018 Medicare payment rates for many hospitals in the 340B Drug Pricing Program was unlawful. AzHHA and our member 340B hospitals are immeasurably pleased with the ruling, which will allow hospitals and health systems in the 340B Drug Pricing Program to serve their vulnerable patients and communities without being hampered by deep cuts to the program.

For more than 25 years, the 340B program has helped hospitals stretch scarce federal resources to reach more patients and provide more comprehensive services—this was Congress’ clear intent for the program. The court’s ruling will help ensure 340B can continue supporting access to affordable health care for our most vulnerable communities.