A federal judge has scheduled a Dec. 21 hearing to review a lawsuit brought by hospitals against the Trump Administration over a nearly 28.5 percent payment cut to providers for drugs discounted under the federal government's 340B program.
The American Hospital Association was joined by the Association of American Medical Colleges, America's Essential Hospitals and three individual hospitals in a lawsuit which is asking a District Court Judge to stop the price of physician-administered drugs in the program from being cut from the current rate of average sales price (ASP) plus 6 percent to ASP minus 22.5 percent.
The reductions are set to take effect Jan. 1, unless the judge issues an injunction.
Hospitals are arguing that Congress intended for certain drugs to be discounted.
The 340B program provides discounts on drugs for hospitals and health clinics serving low-income patients. With the release of the final outpatient prospective payment system rule, qualifying 340B hospitals face a $1.6 billion reduction in payments.
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