The U.S. Supreme Court heard a case this week about the Medicare disproportionate share (DSH) adjustment percentage calculation—a 340B eligibility criterion for hospitals.

Supreme Court May Upend Medicare DSH Calculation Formula, Which Would Impact 340B Stakeholders

340B hospitals’ challenge to Medicare Part B drug reimbursement cuts was not the only case on the U.S. Supreme Court docket this week that could have a significant impact on the program.

On Monday, the justices heard the case of Becerra v. Empire Health Foundation, an important case related to determining Medicare disproportionate share (DSH) payments to hospitals. Conservative justices on the court appear poised to overturn a longstanding rule regarding how to calculate the Medicare DSH payment formula. This could result in more DSH hospitals becoming eligible for the 340B program since hospital eligibility is based partially on their Medicare DSH adjustment percentage.

340B hospitals’ challenge to Medicare Part B drug reimbursement cuts was not the only case on the U.S. Supreme Court docket this week that could have a significant impact on the program.

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