October Term 2021 · Docket 20-1114
Does Medicare overpay 340B hospitals for drugs?
Hospitals claim the law forces Medicare to overpay them. The government says the law allows fair rates.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
- — An official Court opinion was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Mr. Verrilli argued Congress enacted the statute to curb HHS discretion.
Mr. Michel argued the case involves a clear delegation of authority.
Mr. Michel stated the Secretary issued a reasoned rule under notice-and-comment.
Mr. Verrilli claimed the two statutory subclauses lead to the same result.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 31-33 — Transcript, file page 10, lines 31-33
- Official Supreme Court Transcript — file page 10, lines 37-39 — Transcript, file page 10, lines 37-39
- Official Supreme Court Transcript — file page 10, lines 53-9 — Transcript, file page 10, lines 53-9
- Official Supreme Court Transcript — file page 11, lines 55-27 — Transcript, file page 11, lines 55-27
- Official Supreme Court Transcript — file page 12, lines 33-37 — Transcript, file page 12, lines 33-37
- Official Supreme Court Transcript — file page 13, lines 17-19 — Transcript, file page 13, lines 17-19
- Official Supreme Court Transcript — file page 39, lines 17-17 — Transcript, file page 39, lines 17-17
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 4, lines 23-25 — Transcript, file page 4, lines 23-25
- Official Supreme Court Transcript — file page 6, lines 27-41 — Transcript, file page 6, lines 27-41
- Official Supreme Court Transcript — file page 65, lines 39-19 — Transcript, file page 65, lines 39-19
- Official Supreme Court Transcript — file page 66, lines 21-15 — Transcript, file page 66, lines 21-15
- Official Supreme Court Transcript — file page 67, lines 17-19 — Transcript, file page 67, lines 17-19
- Official Supreme Court Transcript — file page 67, lines 23-25 — Transcript, file page 67, lines 23-25
- Official Supreme Court Transcript — file page 68, lines 27-11 — Transcript, file page 68, lines 27-11
- Official Supreme Court Transcript — file page 69, lines 37-41 — Transcript, file page 69, lines 37-41
- Official Supreme Court Transcript — file page 69, lines 55-13 — Transcript, file page 69, lines 55-13
- Official Supreme Court Transcript — file page 7, lines 53-53 — Transcript, file page 7, lines 53-53
- Official Supreme Court Transcript — file page 70, lines 37-39 — Transcript, file page 70, lines 37-39
- Official Supreme Court Transcript — file page 71, lines 49-55 — Transcript, file page 71, lines 49-55
- Official Supreme Court Transcript — file page 72, lines 21-35 — Transcript, file page 72, lines 21-35
- Official Supreme Court Transcript — file page 72, lines 53-7 — Transcript, file page 72, lines 53-7
- Official Supreme Court Transcript — file page 73, lines 29-31 — Transcript, file page 73, lines 29-31
- Official Supreme Court Transcript — file page 74, lines 7-9 — Transcript, file page 74, lines 7-9
- Official Supreme Court Transcript — file page 80, lines 41-51 — Transcript, file page 80, lines 41-51
- Official Supreme Court Transcript — file page 9, lines 13-15 — Transcript, file page 9, lines 13-15
- Official Supreme Court Transcript — file page 9, lines 23-23 — Transcript, file page 9, lines 23-23
- Official Supreme Court Transcript — file page 9, lines 33-37 — Transcript, file page 9, lines 33-37
- Official Supreme Court Transcript — file page 9, lines 7-7 — Transcript, file page 9, lines 7-7
A citizen's guide to the whole case
What this case is about
This case tests how Medicare calculates drug costs for specific hospitals.
Official sources for this section
- Official Supreme Court Transcript — file page 39, lines 17-17 — Transcript, file page 39, lines 17-17
- Official Supreme Court Transcript — file page 4, lines 23-25 — Transcript, file page 4, lines 23-25
- Official Supreme Court Transcript — file page 66, lines 21-15 — Transcript, file page 66, lines 21-15
- Official Supreme Court Transcript — file page 80, lines 41-51 — Transcript, file page 80, lines 41-51
How the case got here
The Supreme Court heard oral argument in this case on November 30, 2021.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 72, lines 21-35 — Transcript, file page 72, lines 21-35
What each side wants
Hospitals want the Court to strike down the current rate rule.
The government wants the Court to keep the current rate rule.
Official sources for this section
- Official Supreme Court Transcript — file page 39, lines 17-17 — Transcript, file page 39, lines 17-17
- Official Supreme Court Transcript — file page 4, lines 23-25 — Transcript, file page 4, lines 23-25
- Official Supreme Court Transcript — file page 66, lines 21-15 — Transcript, file page 66, lines 21-15
- Official Supreme Court Transcript — file page 80, lines 41-51 — Transcript, file page 80, lines 41-51
What each side says
Hospitals argue the statute mandates higher payments for their drugs.
The government argues the statute allows flexible, fair rate setting.
Official sources for this section
- Official Supreme Court Transcript — file page 39, lines 17-17 — Transcript, file page 39, lines 17-17
- Official Supreme Court Transcript — file page 4, lines 23-25 — Transcript, file page 4, lines 23-25
- Official Supreme Court Transcript — file page 66, lines 21-15 — Transcript, file page 66, lines 21-15
- Official Supreme Court Transcript — file page 80, lines 41-51 — Transcript, file page 80, lines 41-51
What the justices asked
Chief Justice Roberts asked about the transparency of the statutory text.
Justice Breyer asked where his understanding of the law was wrong.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 31-33 — Transcript, file page 10, lines 31-33
- Official Supreme Court Transcript — file page 10, lines 37-39 — Transcript, file page 10, lines 37-39
- Official Supreme Court Transcript — file page 10, lines 53-9 — Transcript, file page 10, lines 53-9
- Official Supreme Court Transcript — file page 11, lines 55-27 — Transcript, file page 11, lines 55-27
- Official Supreme Court Transcript — file page 12, lines 33-37 — Transcript, file page 12, lines 33-37
- Official Supreme Court Transcript — file page 13, lines 17-19 — Transcript, file page 13, lines 17-19
- Official Supreme Court Transcript — file page 6, lines 27-41 — Transcript, file page 6, lines 27-41
- Official Supreme Court Transcript — file page 65, lines 39-19 — Transcript, file page 65, lines 39-19
- Official Supreme Court Transcript — file page 67, lines 17-19 — Transcript, file page 67, lines 17-19
- Official Supreme Court Transcript — file page 67, lines 23-25 — Transcript, file page 67, lines 23-25
- Official Supreme Court Transcript — file page 68, lines 27-11 — Transcript, file page 68, lines 27-11
- Official Supreme Court Transcript — file page 69, lines 37-41 — Transcript, file page 69, lines 37-41
- Official Supreme Court Transcript — file page 69, lines 55-13 — Transcript, file page 69, lines 55-13
- Official Supreme Court Transcript — file page 7, lines 53-53 — Transcript, file page 7, lines 53-53
- Official Supreme Court Transcript — file page 70, lines 37-39 — Transcript, file page 70, lines 37-39
- Official Supreme Court Transcript — file page 71, lines 49-55 — Transcript, file page 71, lines 49-55
- Official Supreme Court Transcript — file page 72, lines 21-35 — Transcript, file page 72, lines 21-35
- Official Supreme Court Transcript — file page 72, lines 53-7 — Transcript, file page 72, lines 53-7
- Official Supreme Court Transcript — file page 73, lines 29-31 — Transcript, file page 73, lines 29-31
- Official Supreme Court Transcript — file page 74, lines 7-9 — Transcript, file page 74, lines 7-9
- Official Supreme Court Transcript — file page 9, lines 13-15 — Transcript, file page 9, lines 13-15
- Official Supreme Court Transcript — file page 9, lines 23-23 — Transcript, file page 9, lines 23-23
- Official Supreme Court Transcript — file page 9, lines 33-37 — Transcript, file page 9, lines 33-37
- Official Supreme Court Transcript — file page 9, lines 7-7 — Transcript, file page 9, lines 7-7
Why it matters
This dispute determines how much Medicare pays hospitals for drugs. It affects the cost of care for all beneficiaries. It shapes the financial stability of hospital networks nationwide.
Official sources for this section
- Official Supreme Court Transcript — file page 39, lines 17-17 — Transcript, file page 39, lines 17-17
- Official Supreme Court Transcript — file page 4, lines 23-25 — Transcript, file page 4, lines 23-25
- Official Supreme Court Transcript — file page 66, lines 21-15 — Transcript, file page 66, lines 21-15
- Official Supreme Court Transcript — file page 80, lines 41-51 — Transcript, file page 80, lines 41-51
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 31-33 — Transcript, file page 10, lines 31-33
- Official Supreme Court Transcript — file page 10, lines 37-39 — Transcript, file page 10, lines 37-39
- Official Supreme Court Transcript — file page 10, lines 53-9 — Transcript, file page 10, lines 53-9
- Official Supreme Court Transcript — file page 11, lines 55-27 — Transcript, file page 11, lines 55-27
- Official Supreme Court Transcript — file page 12, lines 33-37 — Transcript, file page 12, lines 33-37
- Official Supreme Court Transcript — file page 13, lines 17-19 — Transcript, file page 13, lines 17-19
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 6, lines 27-41 — Transcript, file page 6, lines 27-41
- Official Supreme Court Transcript — file page 65, lines 39-19 — Transcript, file page 65, lines 39-19
- Official Supreme Court Transcript — file page 67, lines 17-19 — Transcript, file page 67, lines 17-19
- Official Supreme Court Transcript — file page 67, lines 23-25 — Transcript, file page 67, lines 23-25
- Official Supreme Court Transcript — file page 68, lines 27-11 — Transcript, file page 68, lines 27-11
- Official Supreme Court Transcript — file page 69, lines 37-41 — Transcript, file page 69, lines 37-41
- Official Supreme Court Transcript — file page 69, lines 55-13 — Transcript, file page 69, lines 55-13
- Official Supreme Court Transcript — file page 7, lines 53-53 — Transcript, file page 7, lines 53-53
- Official Supreme Court Transcript — file page 70, lines 37-39 — Transcript, file page 70, lines 37-39
- Official Supreme Court Transcript — file page 71, lines 49-55 — Transcript, file page 71, lines 49-55
- Official Supreme Court Transcript — file page 72, lines 21-35 — Transcript, file page 72, lines 21-35
- Official Supreme Court Transcript — file page 72, lines 53-7 — Transcript, file page 72, lines 53-7
- Official Supreme Court Transcript — file page 73, lines 29-31 — Transcript, file page 73, lines 29-31
- Official Supreme Court Transcript — file page 74, lines 7-9 — Transcript, file page 74, lines 7-9
- Official Supreme Court Transcript — file page 9, lines 13-15 — Transcript, file page 9, lines 13-15
- Official Supreme Court Transcript — file page 9, lines 23-23 — Transcript, file page 9, lines 23-23
- Official Supreme Court Transcript — file page 9, lines 33-37 — Transcript, file page 9, lines 33-37
- Official Supreme Court Transcript — file page 9, lines 7-7 — Transcript, file page 9, lines 7-7
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Verified official opinions and orders
Title and summary sources
- Official Supreme Court Transcript — file page 39, lines 17-17 — Transcript, file page 39, lines 17-17
- Official Supreme Court Transcript — file page 4, lines 23-25 — Transcript, file page 4, lines 23-25
- Official Supreme Court Transcript — file page 66, lines 21-15 — Transcript, file page 66, lines 21-15
- Official Supreme Court Transcript — file page 80, lines 41-51 — Transcript, file page 80, lines 41-51
- Official Supreme Court Transcript — file page 39, lines 17-17 — Transcript, file page 39, lines 17-17
- Official Supreme Court Transcript — file page 4, lines 23-25 — Transcript, file page 4, lines 23-25
- Official Supreme Court Transcript — file page 66, lines 21-15 — Transcript, file page 66, lines 21-15
- Official Supreme Court Transcript — file page 80, lines 41-51 — Transcript, file page 80, lines 41-51
Revision history
- Revision 1 · Post Opinion ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Post Opinion ·
Correction: Migrated to the dated official Court activity contract without model use.