The Supreme Court ruled that the Department of Health and Human Services violated drug reimbursement rules related to low-income patients.
The decision came this week in a unanimous 9-0 ruling against the Biden administration’s practice.
SCOTUS hands Biden a defeat.https://t.co/Q4VIbeGtvA
— Dinesh D’Souza (@DineshDSouza) June 21, 2022
The ruling
“But HHS improperly relied on a formula that Congress made available only in specific circumstances, which didn’t apply in the case, the court determined. President George W. Bush in 2003 signed the Medicare Prescription Drug, Improvement, and Modernization Act into law,” the Epoch Times reported.
“The statute requires HHS to establish reimbursement rates every year for certain outpatient prescription drugs provided by hospitals using a predetermined formula,” it added.
The #SupremeCourt unanimously ruled that @HHSGov illegally reduced prescription drug reimbursements to hospitals by $1.6 billion per year in a program aimed at helping poor patients. https://t.co/LgJEvbRbOV
— The Epoch Times (@EpochTimes) June 20, 2022
A new plan
“In a statement, the American Hospital Association and other groups involved in the case called the decision a ‘decisive victory for vulnerable communities and the hospitals on which so many patients depend,'” the Associated Press reported.
“They hope to work with the administration and the courts on a reimbursement plan,” it added.
The Supreme Court ruled that the federal government improperly lowered drug reimbursement payments to hospitals and clinics that serve low-income communities, a reduction that cost the facilities billions of dollars. https://t.co/sL68PBYsz4
— The Associated Press (@AP) June 15, 2022
The strong ruling will force the DHS to change its practices as it relates to low-income patients to match what is legally allowed.
The new ruling also pushes back against another Biden policy in a string of losses.
The loss joins a list of growing concerns ahead of the November midterms as Democrats seek to avoid sweeping losses.