31 July 2020 - On Friday, the U.S. Court of Appeals for the D.C. Circuit ruled that the Trump Administration and HHS had the legal authority to reduce payments by 28.5% for drugs purchased under the 340B discount program by hospital outpatient departments, reversing a decision by the lower court on HHS’s 2017 action on this issue. 

HHS Secretary Alex Azar issued the following statement:

“Today’s court decision is another major victory for President Trump’s agenda of lower drug prices and better healthcare for all Americans. Since HHS took the action that the court affirmed today, we have saved more than $4.8 billion in lower drug costs and reinvested these savings in the Medicare program. Thanks to President Trump’s actions, Medicare patients, and especially those who live in more vulnerable areas, are now paying less out-of-pocket for the drugs they need.”

Read HHS Secretary Azar Statement