Health Law & Business News

Hospitals Again Defeat Medicare Reimbursement Drug Rate Cut (1)

May 7, 2019, 2:51 PMUpdated: May 7, 2019, 7:32 PM

The Health and Human Services Department exceeded its statutory authority when it reduced hospitals’ 2019 Medicare reimbursement rate for some drugs by nearly 30%, a federal court said.

A group of hospitals and hospital associations showed the agency’s reduced reimbursement rate for drugs covered by the 340B program was unlawful, just as they did with respect to an identical 2018 cut, the U.S. District Court for the District of Columbia said May 6.

The lower reimbursement rates cost hospitals billions of dollars, the American Hospital Association said in challenging the 2018 regulation. Hospitals use that money to fund other services...

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