Staff Contact: Jane Drummond, Brian Kinkade or Andrew Wheeler
CMS previously finalized regulations that reduced Medicare OPPS payments at certain hospitals for drugs purchased under the 340B discount program. Beginning Jan. 1, 2018, CMS reduced the payments from average sales price plus 6% to ASP minus 22.5%. On Wednesday, the U.S. Supreme Court unanimously ruled that HHS did not have the authority to implement these reductions. The Court concluded that “absent a survey of hospitals’ acquisition costs, HHS may not vary the reimbursement rates for 340B hospitals. HHS’ 2018 and 2019 reimbursement rates for 340B hospitals were therefore contrary to the statute and unlawful.” MHA published an issue brief with additional details.