Jun 22, 2022
Stephanie Kennan Comments on Supreme Court Case
On June 15, McGuireWoods Consulting Senior Vice President Stephanie Kennan was quoted by Health Leaders, Inside Health Policy and Health Financial Management in news stories about the Supreme Court’s unanimous holding that the Department of Health and Human Services was not allowed to reduce payments for outpatients’ drugs.
The lawsuit, American Hospital Association vs. Becerra, came after HHS instituted a 28.5% cut in payments under the 340B provision, which requires pharmaceutical manufacturers who participate in Medicaid to sell drugs at a significant discount to hospitals.
Stephanie told Health Leaders Magazine: “This opinion calls our HHS for not surveying hospital acquisition costs before making decisions about 340B reimbursement rates. It is important that the program be available for those who need it – but it is as important to get the data correct to determine reasonable reimbursement and achieve the goals of the program.”
Stephanie noted to Health Financial Management: “For all the length of time and the different decisions at lower-court levels, the Supreme Court just kind of narrowed it down and said ‘It’s perfectly clear to us.’”