HHS $9 Billion Drug Discount Fix Falls Short for Some Hospitals

The Biden administration’s proposal to reimburse $9 billion to hospitals shortchanged in a discount drug pricing program will satisfy some health-care providers, attorneys say, but opens the door to more litigation.

The Health and Human Services Department’s proposed rule (RIN 0938-AV18) describes how the agency will craft a remedy after the Supreme Court’s 2022 decision in American Hospital Association v. Becerra, a case in which hospitals said they were shortchanged when the HHS adjusted Medicare payment rates for drugs acquired under the 340B drug discount program from 2018 to 2022. Some attorneys say hospitals feeling shortchanged by the ...