The American Hospital Association (AHA) and other litigants have filed a final reply brief urging a federal appeals court to find that they are entitled to a preliminary injunction to prevent a nearly 30 percent Medicare payment reduction for many hospitals in the 340B drug savings program. SDAHO joined more than 30 state hospital associations in filing an amicus brief supporting the plaintiffs’ case.
In addition, they have requested the case be remanded back to the trial court with a specific instruction from the appeals court to enter an injunction. At a minimum, the injunction would direct the Department of Health and Human Services to set outpatient prospective payment system payment rates for calendar year 2019. It would eliminate the nearly 30 percent reduction and restore payment levels needed to correct the past effects of the reduction. In December, a lower court dismissed the lawsuit as premature, without ruling on the merits of the groups’ claim that the HHS secretary exceeded his statutory authority in making the payment reduction.
The court has scheduled oral arguments for May 4.