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December 27, 2018

Federal District Court Enjoins Medicare Part B Payment Cut for 340B Drugs

On December 27, 2018, the United States District Court for the District of Columbia granted plaintiff hospitals’ motion to permanently enjoin HHS’ nearly 30% cut to certain 340B drugs. The Court held that in implementing its Medicare Part B rate reduction, the Agency exceeded its statutory authority. The Court has asked the parties to submit supplemental briefing regarding the question of a proper remedy given the significant impact this decision may have on the administration of the Medicare program.