Judge Stops Short Of Permanent Injunction Of 340B Medicare Rate Cuts, But Halts Them For Now

U.S. District Judge Rudolph Contreras is ordering the government the deficiencies in the rule. HHS Secretary Alex Azar "patently violated the Medicare Act's text," the judge wrote. "Unlike cases in which the agency's decision may have been lawful, but was inadequately explained … no amount of reasoning on remand will allow the secretary to re-implement the 340B rates in the same manner."

Modern Healthcare: Judge Halts 340B Medicare Rate Cuts For Hospitals

A federal judge late Monday blocked the Trump administration's Medicare cuts to 340B hospitals, saying the new rates aren't lawful for 2018 and 2019. However, U.S. District Judge Rudolph Contreras did not grant hospitals the permanent injunction against the cuts that they wanted. Instead, he ordered the department to take "first crack" at a remedial measure with a status update due Aug. 5. (Luthi, 5/7)

Politico Pro: Court Rules Against Trump's Cuts To Drug Discount Program

The lawsuit was brought by major trade groups American Hospital Association, America's Essential Hospitals and the Association of American Medical Colleges, and three hospitals. HHS declined to comment. The 340B program had come under fire in recent years from the administration and drugmakers, who have argued it’s strayed from its original purpose and that hospitals aren’t always sharing their savings with patients. (Roubein, 5/7)

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