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Hospitals Sue HHS to Stop Cuts to Medicare Drug Payment Program


Photographer: Bloomberg

Hospitals and several of their trade organizations sued the U.S. Department of Health and Human Services to stop cuts to a Medicare program that lets facilities that serve low-income patients buy drugs at a discount and then get reimbursed at a higher rate.

Earlier this month, the government issued a final regulation saying it would cut payments to hospitals in the 340B program by 30 percent. The program has been criticized by drugmakers as being abused by hospitals, who in turn call it a crucial subsidy used to fund care for the poor.