340B Cuts in Place After Court Challenge Falters

340B Cuts in Place After Court Challenge Falters

A U.S. District Court Judge ruled against hospitals’ request for an injunction against a CMS regulation that takes effect January 1, 2018, that cuts 340B drug payments under Medicare Part B.  The payment cut is 28.5%. The judge ruled that the hospitals didn’t have standing as the rule had not yet taken effect, suggesting that at a later time, once the ruling takes effect, the hospitals would have standing.
A growing number of key congressional Republicans are now raising questions about any type of a 340B regulatory moratorium without the imposiItion of new transparency and reporting requirements. A new drug company-backed bill was introduced last week (click here) by Reps. Larry Bucshon (R-IN) and Scott Peters (D-CA) that would do just that.  Click here for Rep. Bucshon’s statement. Rep. McKinley’s (R-WV) bill that only imposes a one-year moratorium on all 340B regs from CMS gained nearly 20 new cosponsors in the past week (now 165). Click here for the updated list.
While CAHs are exempted from this initial change to 340B, we continue to monitor the regulations impacting 340B.