Becker's Healthcare February 13, 2024
Rylee Wilson

Montgomery, Ala.-based Baptist Health is suing Humana, alleging the insurer’s Medicare Advantage plan underpaid the hospital for drugs purchased through the 340B program.

In a lawsuit filed in the Circuit Court of Montgomery County, Ala., Jan. 9, and transferred to the U.S. District Court for the Middle District of Alabama Feb. 9, the health system alleged Humana has refused to pay the system higher rates for outpatient drugs purchased through the 340B program.

In 2022, the Supreme Court ruled CMS illegally cut reimbursement rates for outpatient drugs purchased by safety net hospitals. CMS said it would pay a lump sum of $9 billion to reimburse 340B hospitals to remedy the underpayments. Baptist Medical Center South in Montgomery is...

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Topics: Health System / Hospital, Insurance, Medicare Advantage, Payer, Provider, Uncategorized
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