CHA News Article

CHA Joins Litigation Effort to Overturn Cuts to 340B Program

CHA has joined 31 other state and regional hospital associations in filing the attached amicus (friend of the court) brief in a lawsuit challenging the Centers for Medicare & Medicaid Services’ proposed cuts to the Medicare 340B Drug Pricing Program. 

In American Hospital Association v. Hargan, filed on Nov. 13, the American Hospital Association and various other hospital associations, hospitals and health systems seek to invalidate the finalized regulation that would cut payments to many hospitals in the 340B program by nearly 30 percent. According to the amicus brief filed by CHA and the other hospital associations last Friday, “If the new rule is allowed to stand, safety-net providers will be forced to eliminate or dramatically curtail crucial programs that treat a wide range of medical conditions – from cancer to mental health disorders to diabetes to opioid addiction to HIV/AIDS … Given their unique position, amici respectfully submit this brief to inform the Court about what will happen if CMS is permitted to take a scalpel — or really, an old-fashioned amputation saw — to the 340B Program.”

Plaintiffs seek a preliminary injunction to prevent the regulation from going into effect on Jan. 1, as scheduled; the defendant has responded with a motion to dismiss the lawsuit. Both motions are scheduled to be heard by the court on Dec. 21.