If a federal appeals court's decision stands, a nearly 30 percent cut since 2018 in 340B hospitals’ Medicare Part B drug reimbursement "will devastate 340B hospitals and the communities they serve," 36 hospitals groups told the U.S.Supreme Court.

36 State Hospital Groups Ask U.S. Supreme Court to End Part B Drug Payment Cuts for 340B Hospitals

Thirty-six state and regional hospital associations on Tuesday urged the U.S. Supreme Court to overturn a federal appeals court’s 2-1 July 2020 decision that upheld the nearly 30 percent cut since 2018 in 340B hospitals’ drug reimbursement under the hospital outpatient prospective payment system (OPPS).

Three national hospital groups and three hospitals asked the court on Feb. 10 to grant their petition for review. They said, if the decision stands, the “rate cut will devastate 340B hospitals and the communities they serve.”

The state and regional hospital associations echoed that in their friend-of-the-court brief. The reduction in Medicare Part B reimbursement for 340B-purchased drugs begun under former President Trump “undercuts Congress’ intent by drastically raising drug prices for safety-net hospitals,” they wrote. As a result of the “unlawful rule,” they said, many of the hospitals and health systems the associations represent “will be severely harmed” and “scores of low-income, uninsured, under- insured, and homeless patients, as well as those living in rural communities, will be unable to receive the same level of care.”

Although the Biden administration has not said what its plans are for the cuts, is perceived to be more receptive to hospitals’ 340B program concerns than the last administration.