Medicare proceeds with plan to claw back hospital funds after Supreme Court decision

WASHINGTON — Medicare officials are moving forward with a plan to claw back money from certain hospitals to try to remedy overpayments struck down by the Supreme Court, they announced Thursday.

A federal court ordered the Department of Health and Human Services to compensate hospitals that receive discounted drugs through the 340B program for billions of dollars of underpayments, but the money had already gone out to hospitals that didn’t participate in the program.

Medicare is planning to send $9 billion in lump-sum payments to more than 1,600 hospitals that participate in the drug discount program after the Supreme Court found the program underpaid them for prescription drugs, the agency announced on Friday.

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