American Hospital Association et al. v. Becerra et al.

Why this Matters:

The plaintiffs argue that federal Medicare reimbursement rules adopted by the Department of Health and Human Services imposing payment cuts to hospitals participating in the 340B Drug Pricing Program violate the Social Security Act and Administrative Procedure Act. The growth of the 340B program and practices by certain providers have magnified the significance of potential actions Medicare can take to ensure that it does not improperly subsidize 340B hospitals.

Potential Impact:

Restricting the authority of Medicare to implement certain payment cuts with respect to 340B hospitals would remove one avenue to combatting potential abuse of the program.