Oschner Medical Center hospital complex
New Orleans-based Ochsner Medical Center and six other 340B hospitals have sued in federal court to force HHS to immediately remedy illegal Medicare Part B drug payment cuts in place since 2018.

Sixth Group of 340B Hospitals Sues HHS Over Medicare Drug Payment Cuts

Correction, Friday, Aug. 26, 2022, 3:00 p.m. EDT—The original version of this article mistakenly said the hospital plaintiffs’ complaint stated that HHS improperly based 2020 and 2021 Medicare Part B drug payment cuts for 340B hospitals on a survey of 340B hospitals’ 340B drug acquisition costs taken at the start of the COVID-19 pandemic. That was incorrect. The hospital plaintiffs’ complaint said HHS “affirmatively elected not to rely on survey data, even after the Secretary conducted a 340B drug pricing survey, albeit an invalid one, in 2020.”


Federal health officials must follow the U.S. Supreme Court’s clear directive and immediately raise the Medicare Part B reimbursement rate for 340B hospitals to remedy unlawful underpayments for 2018 through 2022, a group of 340B hospitals said in an Aug. 12 lawsuit filed in U.S. District Court for the District of Columbia.

Federal health officials must follow the U.S. Supreme Court’s clear directive and immediately raise the Medicare Part B reimbursement rate for 340B hospitals to remedy unlawful underpayments for 2018 through 2022, a group of 340B hospitals said in an Aug. 12 lawsuit filed in U.S. District Court for the District of Columbia.

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