Hospitals Score Victory As Judge Rules That Administration’s Cuts To 340B Program Overstepped Authority
The hospital groups fighting the Trump administration's change to the 340B drug discount program said that the cuts impeded their ability to provide care for low-income patients. In his opinion, Judge Rudolph Contreras said that, while the HHS secretary does have the authority to make “adjustments” to the program, “he cannot fundamentally rework the statutory scheme.”
Stat:
Judge Blocks Trump Administration Cuts To 340B Hospital Payments
A federal judge has blocked a Trump administration policy that reduces payments to hospitals under a drug discount program, ruling Thursday that the government overstepped its authority in an attempt to address the high cost of prescription medications. The decision is a win for the 2,000-plus hospitals participating in the program, known as 340B, most of which serve large numbers of low-income patients. (Swetlitz, 12/28)
The Hill:
Federal Judge Blocks Trump Administration's Cuts To Discount Drug Program
The judge determined the rule went against Congress's intent when it approved the program. "The court’s carefully reasoned decision will allow hospitals and health systems in the 340B Drug Pricing Program to serve their vulnerable patients and communities without being hampered by deep cuts to the program," the American Hospital Association, Association of American Medical Colleges and America's Essential Hospitals, which brought the lawsuit, said in a statement. (Hellmann, 12/28)
The Wall Street Journal:
Medicare Can’t Cut Drug Subsidy Payments For Hospitals, Court Rules
The subsidies are designed to help eligible hospitals pay for certain cancer drugs and other medications. Starting this past January, the Department of Health and Human Services reduced the payments. Hospitals sued over the move shortly before it went into effect. U.S. District Judge Rudolph Contreras ruled in favor of the hospitals on Thursday, saying the department lacked the authority to make its cuts under current circumstances. (Evans, 12/28)
