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AAMC Statement on Supreme Court Decision to Hear Arguments in 340B Drug Pricing Cuts Case

July 2, 2021

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AAMC (Association of American Medical Colleges) President and CEO David J. Skorton, MD, issued the following 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:

“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 health care 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.”

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The AAMC (Association of American Medical Colleges) is a nonprofit association dedicated to transforming health through medical education, health care, medical research, and community collaborations. Its members are all 155 accredited U.S. and 17 accredited Canadian medical schools; approximately 400 teaching hospitals and health systems, including Department of Veterans Affairs medical centers; and more than 70 academic societies. Through these institutions and organizations, the AAMC leads and serves America’s medical schools and teaching hospitals and the millions of individuals employed across academic medicine, including more than 186,000 full-time faculty members, 94,000 medical students, 145,000 resident physicians, and 60,000 graduate students and postdoctoral researchers in the biomedical sciences.