Louisiana Hospitals Sue HHS Over 340B Reimbursements in Wake of SCOTUS Ruling

A group of Louisiana hospitals filed a complaint against the Department of Health and Human Services, seeking judicial review of a final decision. The plaintiffs challenge the reduction of “Medicare reimbursement for prescription drugs purchased by certain safety net hospitals at prices required by the section 340B of the Public Health Service Act (PHSA).”

According to the complaint, Xavier Beccera, Secretary of Health and Human Services, exceeded his authority by the aforementioned reduction with regards to the Medicare Statute, the Social Security Act, and the Administrative Procedure Act.

The complaint recounted that Congress established the 340B Program in 1992, which limited the cost of drugs for public, non-profit hospitals like the plaintiffs, and federally funded clinics which serve low-income patients.

The complaint references a recent Supreme Court decision that found the Secretary’s reimbursement cuts were “contrary to the [340B program] state and unlawful.”

The complaint asserts that because these reductions were declared unlawful, the the court should order the defendant to reimburse the plaintiffs’ claims for 340B prescription drugs for the period of cut reductions.

The plaintiffs are represented by K&L Gates LLP.