Here are three things to know about the ruling:
1. Effective in January, $1.6 billion in cuts rolled out for the 340B Medicare drug discount program, according to The Hill. Three hospital groups — the American Hospital Association, the Association of American Medical Colleges and America’s Essential Hospitals — sued CMS to halt the cuts, and later appealed a federal judge’s dismissal of that lawsuit. The July 17 ruling rejects this appeal.
2. Three judges from the U.S. Court of Appeals for the District of Columbia Circuit unanimously rejected the appeal. Judge Gregory Katsas wrote, “When the plaintiffs filed this lawsuit, neither the hospital plaintiffs, nor any members of the hospital-association plaintiffs, had challenged the new reimbursement regulation in the context of a specific administrative claim for payment,” according to The Hill.
3. AHA, AAMC and AEH vowed to challenge the court’s decision. “We will continue our fight to reverse these unwarranted cuts and protect access for patients, and we expect to refile promptly in district court,” they said in a July 17 statement.
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