Supreme Court rules in fa­vor of hos­pi­tals over Medicare re­gard­ing 340B re­im­burse­ment pol­i­cy

The US Supreme Court on Wednes­day unan­i­mous­ly de­cid­ed that the al­most 30% in cuts to Medicare out­pa­tient drug pay­ments for hos­pi­tals par­tic­i­pat­ing in the 340B drug pric­ing pro­gram were un­law­ful.

Es­sen­tial­ly, the court ruled that HHS did not have the right to change re­im­burse­ment rates for 340B hos­pi­tals, which took ef­fect in 2018, with­out con­duct­ing a sur­vey on the hos­pi­tal’s costs. From the rul­ing writ­ten by Jus­tice Brett Ka­vanaugh:

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