AAMC statement on 340B drug pricing cuts case

July 6, 2021

The Association of American Medical Colleges (AAMC) announced its President and CEO David J. Skorton MD issued a statement in response to the Supreme Court’s decision to accept for argument AHA, et. al v. Becerra regarding cuts to Medicare reimbursement to 340B hospitals. The Court will hear the case during its next session, which begins in October. 

Skorton stated: 

“The AAMC looks forward to the consideration of this case, which challenges the authority of the Department of Health and Human Services (HHS) to make significant cuts to 340B reimbursements without following the method set in statute. 

The current reimbursement rates reduce the 340B drug discounts granted to safety-net providers, many of which are teaching hospitals. These hospitals use the current savings to deliver critical healthcare services to low-income and vulnerable patients, which includes providing free or substantially discounted drugs to low-income patients, establishing neighborhood clinics, and improving access to specialized care previously unavailable in some areas. A reversal of the cuts will ensure that low-income, rural, and other underserved patients and communities are able to access the vital services they need.” 

AAMC has the release