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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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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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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Judge’s 340B Statutory Interpretation Was “Exactly Backward,” Lilly Tells Appeals Court

Lilly wordmark on exterior sign
Lilly told a federal appeals court its decision in the drug company's 340B contract pharmacy lawsuit "will have profound consequences for the integrity of the national healthcare system."

A federal district court’s ruling last October that federal law requires drug manufacturers to deliver 340B purchased drugs to contract pharmacies conflicts with two other courts’ conclusions, “upsets the delicate statutory balance Congress struck, and raises serious constitutional problems,” drug

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CMS Asks Court Again to Dismiss 340B Health Centers’ Suit Over Medicaid Drug Benefits Transfer

A state of California benefits identification card
CMS again asked a federal district court to dismiss California 340B health centers’ lawsuit over the state’s transfer of Medicaid managed care drug benefits to Medicaid fee for service.

The U.S. Centers for Medicare & Medicaid Services (CMS) last week again asked a federal district court in Sacramento to dismiss a group of California health centers’ claims for relief over CMS’s approval of the state’s transfer of Medicaid managed

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Tennessee Health System Strikes Back Against DOJ Claims It Paid for Referrals to Boost 340B Revenue

Methodist University Hospital, Methodist Le Bonheur Healthcare building
Methodist Le Bonheur Healthcare disputes U.S. Justice Department claims that the health system's agreements under the system’s affiliation with a private oncology practice were “a fiction” perpetuated partially to let the system “realize profits from the 340B program.”

A Tennessee health system last week denied U.S. Justice Department (DOJ) allegations that agreements under the system’s seven-year affiliation with a private oncology practice were “a fiction” perpetuated partially to let the system “realize profits from the 340B program.”

Methodist

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Provider Groups File Appellate Briefs in Key 340B Contract Pharmacy Cases

US court of appeals for the DC circuit courtroom interior
Groups representing health centers, HIV/AIDS clinics, and hospitals filed briefs in key 340B contract pharmacy cases in federal appeals courts in Washington, D.C., and Philadelphia.

Groups representing health centers, HIV/AIDS clinics, and hospitals asked federal appeals courts in Philadelphia and Washington, D.C., this week to hold that drug manufacturers must give covered entities 340B discounts on drugs when entities use contract pharmacies to fill prescriptions

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25 States Say Drug Companies’ 340B Contract Pharmacy Actions Are Illegal and Harm Public Health

excerpt of amicus brief for 340B drug pricing program
An excerpt from one of the two friend of the court briefs that 25 states filed in pivotal 340B contract pharmacy litigation in federal appeals courts.

Yesterday, 340B Report broke the news that a group of 25 states from blue bastions such as Connecticut and Maryland to red states such as Arkansas and Mississippi weighed in favor of the federal government’s effort to punish drug manufacturer

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News Alert

25 States File Joint Briefs Backing HHS and HRSA in 340B Contract Pharmacy Cases

Connecticut Attorney General William Tong headshot
Connecticut Attorney General William Tong (D) led the coalition of states backing the federal government in 340B contract pharmacy cases before federal appeals courts.

Twenty-five states are backing the federal government in litigation before two federal appeals courts over drug manufacturers’ denials of 340B pricing when covered entities use contract pharmacies.

A bipartisan group of state attorneys general filed friend of the court briefs this

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Letting Pharma Put Strings on 340B is Letting Fox Guard Henhouse, Feds Tell Appeals Courts

Department of Justice sign on a building facade
The DOJ told federal appeals courts in Philadelphia and Washington, D.C., that HHS was right to tell drug manufacturers their conditions on 340B contract pharmacy are illegal and must end.

Letting drug manufacturers put conditions on 340B drug discounts “would be akin to letting the fox guard the henhouse,” the U.S. Justice Department (DOJ) told federal appeals courts in Philadelphia and Washington, D.C., last night in a pair of filings

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