Thursday, July 8, 2021
On 2 July 2021, the Supreme Court announced that it has accepted the American Hospital Association’s (AHA) petition for certiorari in American Hospital Association v. Becerra. At issue is the Centers for Medicare and Medicaid Services’ (CMS) nearly 30 percent cut to payments for specified covered outpatient drugs (SCODs) under the Medicare Outpatient Prospective Payment System (OPPS) for certain hospitals participating in the 340B Drug Pricing Program (340B Program), which provider groups have been challenging in court since 2017. Notably, the Supreme Court’s grant of certiorari comes as CMS is expected to release any day now the CY 2022 OPPS proposed rule, which could either reverse or continue the payment cuts. Provider groups have been urging CMS to reverse the payment reductions as part of the CY 2022 OPPS proposed rule. This client alert provides an overview of these developments and what to expect next.
340B Update: Supreme Court Accepts Certiorari in 340B Payment Reduction Case | K&L Gates LLP
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