The University of Kansas Medical Center sued last month over the continuation next year of a nearly 30% cut in Medicare Part B reimbursement for 340B purchased drugs.

340B Teaching Hospital Sues Over Medicare Part B Drug Payment Cut

The University of Kansas Medical Center (KUMC) has filed suit challenging the continuation in 2021 of a nearly 30% cut in Medicare Part B reimbursement for hospitals’ 340B-purchased physician-administered drugs.

KUMC filed the suit Nov. 24 in U.S. District Court for the District of Columbia. The cut has been in place since 2018 and is due to continue next year. The U.S. Supreme Court heard arguments Nov. 30 in a different case challenging the cut’s legality. It is expected to rule early next year.

This past June, more than 150 hospitals sued over the cuts (Advocate Christ Medical Center v. Becerra).

Vanderbilt University Medical Center sued in June 2020 (Vanderbilt University Medical Center v. Azar). University of Alabama Hospital and Baptist Medical Center South sued in March 2020 (Board of Trustees of the University of Alabama v. Azar).

In December 2019, a group of 135 hospitals sued (Advocate Bromenn Regional Medical Center v. Azar). In January 2019, KUMC joined 36 other hospitals in suing (University of Kansas Hospital Authority v. Azar).

It is believed that proceedings in all these cases are stayed pending the Supreme Court’s decision in the case filed by three national hospital groups and three individual health systems (American Hospital Association v. Becerra).