The U.S. Supreme Court heard arguments today about the legality of the nearly 30% Medicare Part B drug payment cut for 340B hospitals.

News Alert: U.S. Supreme Court Justices Question CMS’s Legal Basis for Slashing 340B Hospitals’ Drug Reimbursement

Several U.S. Supreme Court justices asked during a hearing today whether the Centers for Medicare & Medicaid Services (CMS) had statutory authority to single out 340B hospitals for a nearly 30% cut in Medicare Part B drug reimbursement beginning in 2018.

The high court this morning heard arguments in three hospital groups and three health systems’ appeal of a federal circuit court’s July 2020 decision upholding CMS’s drug payment cut for 340B disproportionate share hospitals, non-rural sole community hospitals, and rural referral centers. The court is expected to hand down its decision in American Hospital Association v. Becerra perhaps as soon as March.

Several U.S. Supreme Court justices asked during a hearing today whether the Centers for Medicare & Medicaid Services (CMS) had statutory authority to single out 340B hospitals for a nearly 30% cut in Medicare Part B drug reimbursement beginning in 2018.

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