340B Payment Cut Overturned By US Federal Court; What Comes Next?
Siding with coalition of hospitals, judge ruled that HHS lacked authority to cut Medicare reimbursement for drugs purchased at 340B prices. That should change the dynamics of the 340B reform debate heading into 2019 – but don’t expect the Trump Administration to back down on its push to rein in what it sees as abuses of the discount.
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Case before high court involving Medicare payment to hospitals for discounted outpatient drugs does not directly involve manufacturers. But the scope of the ruling could have a profound effect on how much leeway the government has to address drug pricing using administrative tools.
The US government program that allows safety net providers to purchase drugs at deep discounts is probably not what most American voters have in mind when they say drug pricing is a top issue. But the 340B program has been a rare area of consistent focus – and actual sustained change – in the Trump Administration.
Pharma In The Crosshairs: Dual Drug Pricing Hearings Portend Rocky Road Ahead – And Potential Subpoenas
Last week’s US House and Senate hearings on drug pricing underscore how quickly the negative attention has turned to industry. With more public discussions planned – including potential testimony from pharma execs – here’s what can be expected in the months ahead.