The Department of Health and Human Services (HHS) appealed the U.S. District Court for the District of Columbia’s decision to enjoin payment cuts for 340B drugs  under the 2018 Outpatient Prospective Payment System (OPPS) rule.  HHS’s action was expected in the ongoing battle over the nearly 30 percent reduction to Medicare Part B reimbursement for separately payable 340B drugs that applied to many 340B hospitals.  The District Court has not yet decided whether hospitals will receive retrospective repayment to compensate for the payment cuts in 2018.

With respect to payment cuts for 2019, the plaintiff hospital groups amended their complaint earlier this month to include claims for 340B drugs in 2019 and requested an injunction to stop implementation of the 2019 OPPS cuts prospectively.  HHS subsequently filed a motion to dismiss the hospital groups’ claims related to the 2019 OPPS rule.

We will continue to monitor future developments related to this litigation.