Hospital groups filed a brief with the U.S. Supreme Court on Friday in their lawsuit challenging the deep cut in 340B hospitals' Medicare Part B drug reimbursement.

340B Hospitals Make Their Case to Supreme Court for Ending Deep Medicare Drug Payment Cuts

Federal health officials “violated unambiguous statutory commands” in 2018 when they lowered lower Medicare Part B drug reimbursement rates for 340B hospitals by nearly 30% and their decision should be set aside, hospital groups and individual hospitals told the U.S. Supreme Court last Friday.

The groups told the court on Sept. 3 that the Medicare statute does not preclude administrative or judicial review of the decision to cut 340B hospitals’ drug reimbursement. They also said a 1984 legal precedent about when courts should defer to federal agencies’ statutory interpretations “cannot justify” the U.S. Centers for Medicare & Medicaid Services’ (CMS) action.

Federal health officials “violated unambiguous statutory commands” in 2018 when they lowered lower Medicare Part B drug reimbursement rates for 340B hospitals by nearly 30% and their decision should be set aside, hospital groups and individual hospitals told the U.S. Supreme Court last Friday.

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