The Supreme Court Aftermath: What Comes Next in Fight Over Medicare Part B Drug Payments to 340B Hospitals?

The U.S. Supreme Court building and entrance plaza
Yesterday's U.S. Supreme Court's opinion about deep cuts in 340B hospitals’ Medicare Part B drug reimbursement ended Phase 1 of the debate. Phase 2 gets underway next month in lower federal courts in Washington, D.C., and in the pages of the Federal register.

Yesterday, the U.S. Supreme Court ruled that huge cuts in 340B hospitals’ Medicare Part B drug reimbursement in 2018 and 2019 were unlawful. It marked the end of Phase 1 of the debate over the cuts.

Phase 2 is gearing

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Bipartisan U.S. House Group Renewing Pressure on HHS to Punish Drug Makers Over 340B Pricing Denials

Headshots of U.S. House gang of six Representatives Spanberger, Axne, McKinley, Matsui, Katko, Johnson
Clockwise from top left, Reps. Abigail D. Spanberger (D-Va.), Cindy Axne (D-Iowa), David McKinley (R-W.Va.), Doris Matsui (D-Calif.), John Katko (R-N.Y.), and Dusty Johnson (R-S.D.) are urging fellow House members to sign a letter urging HHS to begin 340B enforcement actions against drug companies.

Six U.S. House members—three Democrats and three Republicans—are urging fellow representatives to sign a letter asking U.S. Health and Human Services (HHS) Department leaders “to begin enforcement actions against pharmaceutical companies that refuse to honor 340B discounts on prescription drugs.”

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Breaking News

U.S. Supreme Court Strikes Down Medicare Part B Drug Payment Cuts for 340B Hospitals in 2018 and 2019

Statue and Corinthian capitals at the entrance to the Supreme Court building
The U.S. Supreme Court today struck down deep Medicare Part B drug reimbursement cuts for many 340B hospitals during 2018 and 2019. The decision does not affect continuation of the cuts in 2020 through this year, however.

UPDATE, June 15, 2022, 12:45 p.m. EDT—The U.S. Centers for Medicare & Medicaid Services said, “We are aware and reviewing the decision.”


The U.S. Supreme Court ruled unanimously this morning that the federal government unlawfully slashed Medicare Part

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NACHC Hopes Congress Will Pass Laws Protecting 340B Providers This Year

screenshot of Joe Dunn with NACHC brand background
NACHC “would love to see” Congress pass legislation by the end of this year protecting health centers from drug manufacturers and PBMs' restrictions on 340B access, NACHC Senior Vice President Joe Dunn said during a news conference yesterday.

The National Association of Community Health Centers “would love to see” Congress pass legislation by the end of this year that stops drug makers from restricting 340B contract pharmacy arrangements and stops pharmacy benefit managers from taking covered entities’ 340B savings, a NACHC

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Drug Manufacturer 340B Overcharge Notices Reach New Record, Novo Nordisk Is the Latest

Fiasp insulin bottle
Novo Nordisk announced refunds for 340B overcharges on six NDCs including one for Fiasp insulin.

With more than six months to go in the year, the number of refunds that drug manufacturers have had to provide to 340B providers has already topped the previous annual record of 17.  Drug manufacturer Novo Nordisk becomes the 21st manufacturer to 

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HRSA Seeks Comments on Proposed Changes to 340B Program Forms

screenshot of HRSA Office of Pharmacy Affairs 340B welcome page
HRSA is seeking comment on plans to revise online forms covered entities must fill when they enroll in the 340B program, recertify their eligibility annually, or update information in 340B OPAIS, the federal 340B program database.

The U.S. Health Resources and Services Administration (HRSA) is seeking comment on plans to revise online forms covered entities must fill out when they enroll in the 340B program, recertify their eligibility annually, or update information in 340B OPAIS, the

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Novartis and United Therapeutics File Briefs in Appeals Court in 340B Contract Pharmacy Lawsuits

U.S. federal appeals court Washington, D.C. building
Novartis and United Therapeutics filed briefs last night in a federal appeals court in Washington, D.C., backing their right to impose conditions on 340B sales.

Drug manufacturers Novartis and United Therapeutics (UT) last night urged a federal appeals court in Washington, D.C., to affirm a lower court’s November 2021 judgement that the 340B statute does not stop manufacturers from attaching any conditions to 340B drug

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Congress Turns House Floor to 340B For an Hour

C-SPAN screenshot of Rep. Abigail Spanberger (D-VA) speaking on the House floor
Rep. Abigail Spanberger (D-Va.) organized an hour's worth of testimonials for 340B Tuesday night on the U.S. House floor.

Seven U.S. representatives—five Democrats and two Republicans—lauded the 340B program on the House floor Tuesday night during an hour of speeches organized by Rep. Abigail Spanberger (D-Va.) and co-hosted by Rep. John Rose (R-Tenn.).

The event was postponed twice before

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FTC To Investigate PBMs’ Impact on Drug Access and Affordability

screenshot of FTC inquiry on pharmacy benefit managers
Under pressure from small pharmacies, drug makers, 340B providers, and others, the FTC agreed to "shine a light" on PBMs' business practices and their impact on pharmacies, payers, doctors, and patients.

Just months after deadlocking, the U.S. Federal Trade Commission voted unanimously on Tuesday to launch an investigation into pharmacy benefit managers’ business practices to assess their impact on prescription drug access and affordability.

Groups that represent 340B health care providers 

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AstraZeneca and Sanofi Ask 340B ADR Panel to Dismiss Health Centers’ Overcharging Claims

screenshot of HRSA 340B administrative dispute resolution web page
AstraZeneca and Sanofi asked a 340B administrative dispute resolution panel to dismiss NACHC’s claims its members are being overcharged due to the companies’ 340B contract pharmacies policies.

Drug manufacturers AstraZeneca and Sanofi have asked a 340B administrative dispute resolution panel to dismiss the National Association of Community Health Centers’ claims that its members are being overcharged due to the companies’ denied or restricted 340B sales when health

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