Yesterday, hospital groups filed a second lawsuit challenging a nearly 30% reduction to Medicare Part B reimbursement for 340B drugs that went into effect January 1, 2018. 

 The hospital originally filed a lawsuit last year challenging the cuts under CMS’ 2018 OPPS rule, but lost on jurisdictional grounds.  The final decision stated that the hospitals must challenge the cuts by challenging the payment of a specific claim, but did not reach the substantive question of whether CMS has authority to implement the reimbursement reductions.

 In the refiled lawsuit, the hospitals addressed the court’s procedural concerns by challenging payments made on specific claims and request a favorable judgment on the merits of their claims.

 We will continue to monitor developments related to this litigation.