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D.C. Circuit Upholds Prior Medicare Cuts to 340B Hospitals’ Drug Payments and CMS Furthers the Cuts
On July 31, 2020, the D.C. Circuit Court of Appeals overturned a 2018 D.C. district court decision and found that the U.S. Department of Health and Human Services (“HHS”) acted within its statutory authority in reducing Medicare Part B reimbursement rates by 28.5% for certain outpatient drugs to hospitals that participate in the federal 340B Drug Pricing Program.