Judge tosses AHA challenge to 340B cuts

A federal judge is allowing CMS to move forward with its planned $1.6 billion cut to a federal drug discount program.

Starting January 1, providers participating in 340B are scheduled to begin receiving smaller reimbursements for purchased drugs.  Under the old calculation, providers received six (6) percent on top of the average sales price of the drug.  Starting this week, CMS will pay approximately $65,000 for a drug that costs $84,000.

Several hospital associations sued HHS in November, shortly after the CMS issued its final rule changing the 340B payment calculations.  The groups said they will continue to pursue their lawsuit.  HHS has said it is well within its authority to make the 340B changes.