The American Hospital Association, Association of American Medical Colleges and America's Essential Hospitals won an expedited briefing schedule in their case against cuts under the 340B Drug Pricing Program.
Under CMS' 2018 Medicare Outpatient Prospective Payment System rule, hospitals receive 22.5 percent less than the average sales price for drugs purchased through 340B. That equates to $1.6 billion in Medicare payment cuts to hospitals. The agency is offsetting the projected drug payment cut by redistributing an equal amount for non-drug items and services within the OPPS.
The three associations sought to stop the cuts by filing a lawsuit against HHS last November. A lower court dismissed the suit in December on the grounds the case was premature, and cuts took effect Jan. 1.
According to the AHA, the lower court did not decide the merits of the group's assertion. The groups, joined by health system plaintiffs, appealed the case last month. On Jan. 17, they sought an expedited briefing schedule. That request was granted by the United States Court of Appeals for the District of Columbia Circuit Jan. 30. The briefing schedule begins Feb. 15 and ends April 2.
A date for oral arguments will be set at a later time.
Ayla Ellison and Molly Gamble contributed to this report.
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