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The U.S. District Court for the District of Columbia should vacate the 2022 outpatient prospective payment system rule insofar as it sets a payment rate for 340B hospitals that is lower than the generally applicable payment rate of Average Sales Price plus 6%, AHA told the court yesterday. 

The U.S. Supreme Court in June unanimously ruled in favor of AHA, concluding that HHS’ 2018 and 2019 reimbursement rates for 340B hospitals were unlawful, but left it to the lower court to determine the appropriate remedy. 

The Court should not give HHS “permission to continue violating the law, each and every day, for the remainder of 2022,” AHA wrote. “Here, there is only one way for the government to stop violating the law going forward because the rationale of the Supreme Court’s ruling dictates what HHS must do to fix its violation: reimburse 340B hospitals at the same rate as non-340B hospitals for the remainder of 2022.”