Health Law & Business News

Hospitals Defeat HHS’s Medicare Billion-Dollar Drug Rate Cut (1)

Dec. 28, 2018, 2:32 PM

A group of hospital associations and nonprofit hospitals has stopped the Health and Human Services Department from cutting Medicare drug payments worth billions of dollars.

The HHS acted outside its statutory authority when it reduced the reimbursement formula for certain outpatient drugs by nearly 30 percent, the U.S. District Court for the District of Columbia said Dec. 27.

The court permanently blocked the HHS from implementing the rate reduction, but it refused to grant the hospitals their requested relief. The hospitals asked the court to award them the difference between the reimbursements they’ve received and the amount they would have...

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