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

Docket No.
19-5198
Appellate Court
D.C. Circuit

Goal

  • Award restitution
  • Block enforcement of an agency action
  • Declaration that agency action is unlawful

Issues

Litigation Content

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 contain health care costs. This appeal addresses whether the district court erred in finding that HHS exceeded its statutory authority when it adjusted 340B reimbursement rates without conducting a survey.

 

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.

Litigation Information

Current Status

Decision issued