STATEMENT BY 340B HEALTH REGARDING U.S. DISTRICT COURT ON 340B CASE
Washington, D.C., December 29, 2017— Today’s decision by Judge Contreras not to halt implementation of the Medicare Part B payment reduction to 340B hospitals is disappointing but in no way ends the debate over this onerous and harmful regulation. In dismissing the case on procedural grounds, the court has not yet determined whether the Centers for Medicare & Medicaid Services (CMS) has the legal authority to reduce payments to 340B hospitals, a question which the court could rule on in the future. 340B Health will continue to work with Congress and other key stakeholders to reverse these cuts. If these cuts remain in place, many safety net hospitals will be forced to cut back on services, close service sites, and let go clinicians and other caregivers. These payment cuts do nothing to lower drug prices, do not save Medicare a dollar, and won’t reduce costs for seniors and other patients. It’s time for Congress to act on legislation to stop the cuts and prevent the damage. Bipartisan majorities in both chambers of Congress have expressed strong concern about this misguided policy.
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Contact Richard Sorian at richard.sorian@340bhealth.org or 202-536-2285.