The American Hospital Association (AHA) and other litigants announced yesterday their intent to appeal the district court’s recent decision dismissing the lawsuit that sought to prevent Medicare payments in the 340B Drug Pricing Program.
The lawsuit argues that the 340B provisions of the Centers for Medicare & Medicaid Services’ (CMS) outpatient prospective payment system final rule violates the law and, therefore, should be set aside under the Administrative Procedure Act as unlawful and in excess of the Health and Human Services Secretary’s statutory authority.
The CMS final rule took effect Jan. 1 and reduces Medicare payments by nearly 30 percent for certain hospitals who purchase outpatient drugs under the 340B program. In South Dakota, the total amount of cuts exceeds $12 million.
