Supreme Court Rules Narrowly Against Medicare Payments Cuts To 340B Hospitals
The decision doesn’t directly impact manufacturers or the 340B discounts they are required to provide – and does not address the potentially much broader regulatory issue of whether the Supreme Court’s so-called Chevron doctrine should be changed.
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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.
Federal court vacates enforcement letter to Lilly from HRSA, but the decision was not completely favorable to pharma. It also offers the view that the law does not allow manufacturers to restrict 340B discounts to hospitals using multiple contract pharmacies.
PhRMA is stepping up its advocacy for 340B reform, noting recent reduction in Medicare payments for 340B is encouraging in that it indicates Administration may be open to further change.