Maine Hospital Association and Others Sue Federal Government Over Changes to Drug Discount Program
The Maine Hospital Association, Northern Light Eastern Maine Medical Center, and other hospitals from New York, Arkansas, and North Dakota, along with the American Hospital Association, have filed a lawsuit in federal court in Portland. The lawsuit challenges recent changes made by the U.S. Department of Health and Human Services (HHS) to the federal 340B drug discount program. This program mandates that drug companies sell certain outpatient medications at discounted rates to eligible hospitals, with the savings typically reinvested into charity care and other essential services like behavioral health. The plaintiffs contend that the HHS changes, which expand the use of a rebate model, are projected to cost hospitals approximately $1 billion annually, significantly higher than the federal government's estimate of $537 million. HHS, however, argues that the program has expanded beyond its original intent and needs adjustments to improve accountability and prevent duplicate discounts.
