HHS Can Cut Billions In Payments To Hospitals, DC Circ. Says

Law360 (July 31, 2020, 8:28 PM EDT) -- The U.S. Department of Health and Human Services lawfully made billions of dollars in reimbursement cuts for drugs purchased through a special discount program for hospitals in low-income areas, the D.C. Circuit ruled Friday, undoing a win for the American Hospital Association.

A split three-member panel reversed a lower court's finding that HHS exceeded its authority by slashing Medicare reimbursement by nearly 30% for drugs purchased in the 340B discount program — a reduction worth about $1.6 billion annually.

The agency used acceptable data to make the reductions and is entitled to deference, the majority said, adding that HHS understandably decided...

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