HHS to Have “First Crack” at Remedies for Unlawful Medicare 340B Cuts

Thoughtware Alert May 10, 2019
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On May 6, 2019, a federal district court judge ruled that the U.S. Department of Health & Human Services (HHS) once again exceeded its authority with the 2019 Medicare Part B reimbursement cuts for hospitals participating in the 340B Drug Pricing Program (340B Program), as it had with the 2018 Medicare Part B reimbursement cuts. The judge further stated that HHS would have the “first crack at crafting appropriate remedial measures” to the 2018 and 2019 Medicare Part B reimbursement cuts.

The federal judge requested that a status report regarding the proposed remedies be filed by August 5, 2019.

This comes after the ruling on December 27, 2018, in which the federal judge ruled that the secretary of the HHS “does not have statutory authority” to reduce Medicare Part B drug reimbursement to hospitals participating in the 340B Program for 2018, as noted in a previous BKD Thoughtware® article.

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