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U.S. Supreme Court faults Medicare cuts to hospitals for outpatient drugs

2022.06.15 17:31

U.S. Supreme Court faults Medicare cuts to hospitals for outpatient drugs

By Andrew Chung

(Reuters) – The U.S. Supreme Court on Wednesday ruled in favor of a group of nonprofit hospitals in their bid to restore billions of dollars cut by the government from their annual Medicare reimbursements since 2018.

The unanimous ruling overturned a lower court’s 2020 decision that the U.S. Department of Health and Human Services (HHS) had the authority to reduce by $1.6 billion the yearly Medicare payments for outpatient drugs that had helped subsidize the operations of hospitals catering to the poor and uninsured.

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