DC Circ. Asks If HHS Had Leeway For Drug Payment Cuts

Law360 (November 8, 2019, 8:10 PM EST) -- D.C. Circuit judges on Friday grappled with whether the government abused its leeway to adjust Medicare payments to a special drug discount program for hospitals when it slashed reimbursements almost 30%.  

The U.S. Department of Health and Human Services is trying to overturn a trial court decision that could result in HHS having to pay back billions of dollars in savings it has accrued on drug discounts under the 340b program, which Congress created in 1992 to provide outpatient drugs at reduced rates to health care providers in low-income areas.

The statute that set up the program includes complex mechanisms for...

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