U.S. District Court Washington D.C.
A federal district court in Washington, D.C., cleared the way for CMS to resume paying hospitals at ASP +6% for 340B drugs in as quickly as two weeks.

Federal Court Clears Way for Medicare to Boost 340B Hospitals’ Part B Drug Payments

A federal district judge on Monday cleared the way for the Centers for Medicare and Medicaid Services (CMS) in as quickly as two weeks to resume paying hospitals at the rate of average sales price (ASP) plus 6% for their 340B-purchased drugs, ending a previous unlawful Medicare Part B payment cut to ASP minus 22.5% that started in 2018. 

Judge Rudolph Contreras of U.S District Court for the District of Columbia clarified in his Oct. 3 order that his Sept. 28 ruling restoring the higher Medicare pay rate for the rest of 2022 was a final judgement. The court was responding to a motion filed late last week by CMS seeking clarification that the court’s judgment was final.

A federal district judge on Monday cleared the way for the Centers for Medicare and Medicaid Services (CMS) maybe in as soon as two weeks to resume paying hospitals at the rate of average sales price (ASP) plus 6% for their 340B-purchased drugs, ending a previous unlawful Medicare Part B payment cut to ASP minus 22.5% that started in 2018.

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