Drug Pricing Day At The US Supreme Court
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.
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Data from the US Health and Human Services Department quantify the financial impact of manufacturer 340B “integrity” initiatives on hospitals and other providers over the past several months.
A more conservative US Supreme Court may mean a less authoritative FDA, and drug pricing won’t get as much attention in the presidential campaign, which is a good thing.
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.