Hospital Associations Challenge Cuts to Medicare Drug Discount Program

Munger, Tolles & Olson represented 32 non-profit state and regional hospital associations in filing an amicus brief opposing cuts to a Medicare drug payment program proposed by the U.S. Department of Health and Human Services (HHS).

In American Hospital Association v. Hargan, various health care organizations are suing HHS to block a regulation that would cut payments to hospitals in the 340B drug discount program by nearly 30 percent. The 340B program saves hospitals and health systems millions of dollars each year on the purchase of outpatient drugs to treat America’s poorest patients.

According to the amicus brief filed Dec. 8, 2017, “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.”

The Munger, Tolles & Olson attorneys representing amici include Chad Golder, Sarah G. Boyce and Molly K. Priedeman.