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The Trump administration has signaled plans to drop its appeal of a court order that blocked a pilot from changing payment terms for a controversial federal drug discount program.
In a Monday court document, the U.S. Department of Justice indicated talks are under way with the American Hospital Association and several hospital systems, which filed a lawsuit challenging a plan that allowed drug companies to pay rebates — instead of discounts — for some medicines purchased under the 340B Drug Discount Program.
“The parties are engaged in discussions about returning the [rebate] approvals challenged in this litigation to the agency for reconsideration. The agency intends to resolve such proceedings promptly. Therefore, the parties do not believe that expediting this appeal is warranted at this time and plan to dismiss the appeal in short order,” the Justice Department wrote.
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