Care for Neediest Hangs in Balance in High Court HHS Case

Hospitals and university medical centers—in a case pivoting on how much authority a federal agency should have—are asking the Supreme Court to turn back drug reimbursement rate cuts they say threaten health-care services for America’s most vulnerable populations.

One one side, the American Hospital Association and its supporters argue that the Health and Human Services Department overstepped its statutory authority when it slashed almost 30% in Medicare reimbursement rates paid to hospitals in the government’s 340B drug discount program.

The aim of the 29-year-old program is to help hospitals and other facilities stretch their funds—optimally using the savings to ...