Supreme Court Hears Oral Arguments on 340B Hospital Discount Lawsuit


On November 30, 2021, the Supreme Court of the United States heard oral arguments from the American Hospital Association (AHA) and the Department of Health and Human Services (HHS) on whether the Centers for Medicare and Medicaid Services (CMS) could reimburse drugs that were distributed through the 340B program at a lower rate than non-340B hospitals. The AHA is arguing that the government’s calculation of the reimbursement rate is based on insufficient data; thus, CMS is required to reimburse based on the “average price” of the drugs. On the other hand, HHS argued that the survey it conducted did provide sufficient data for CMS to base the reimbursement rate on the “average acquisition cost” rather than the “average price”. Written briefs can be found here. 


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