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A federal district court in Washington, D.C., declined to order HHS to promptly repay hospitals for illegal Part B drug payment cuts spanning five years.

Breaking: Judge Declines to Order HHS to Promptly Repay 340B Hospitals for Illegal Medicare Part B Drug Reimbursement Cuts

A federal district judge in Washington, D.C., this morning ruled that Medicare Part B underpayments to hospitals for 340B drugs from 2018 to 2022 were unlawful. But in a disappointment for the hospital groups that sued, the judge declined to order the government to repay hospitals promptly for those underpayments.

Instead, U.S. District Judge Rudolph Contreras sent the matter back to the U.S. Department of Health and Human Services to decide how to remediate its underpayments. Contreras said he “expects that HHS will act promptly” to do so.

A federal district judge in Washington, D.C., this morning ruled that Medicare Part B underpayments to hospitals for 340B drugs from 2018 to 2022 were unlawful. But in a disappointment for the hospital groups that sued, the judge declined to order the government to repay hospitals promptly for those underpayments.

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