The Supreme Court remanded the case to the district court to determine any remedies following the vacatur. The Supreme Court then reversed the DC Circuit in June 2022 and vacated the 2018 rule. The district court agreed with the hospitals, but the US Court of Appeals for the District of Columbia Circuit reversed the district court. Hospitals subject to the reductions immediately sued HHS in federal district court, alleging that HHS did not have the authority to reduce 340B reimbursement rates in this manner. Critical access hospitals are not paid under OPPS and therefore were not subject to the payment cuts.) The payment reduction was implemented in a “budget neutral” manner, such that the estimated dollars of the payment reduction for 340B drugs were used to increase payments on other items and services paid under OPPS. (PPS-exempt cancer hospitals, PPS-exempt children’s hospitals and rural sole community hospitals that participate in the 340B Program and are paid under OPPS were not subject to the payment cuts. The issues began in 2018, when HHS implemented a 28.5% reduction to payments for most 340B drugs paid under OPPS, lowering the reimbursement amounts from average sales price (ASP) plus 6% to ASP minus 22.5%. Court Issues Permanent Injunction Blocking Medicare 340B Payment Cuts.July Surprise – Supreme Court Agrees to Review Medicare Payment Cuts to 340B Drugs.DC Circuit Upholds OPPS Reimbursement Reductions for 340B Drugs.We previously analyzed the 340B payment reductions and litigation in a series of articles:
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