A U.S. appeals court panel has refused to allow the Trump administration to proceed with a pilot program that would alter payments for medicines purchased through a controversial federal drug discount program.

The panel upheld a lower court ruling late last month that the Health Resources and Services Administration failed to adequately consider the consequences for so-called safety-net hospitals and clinics that participate in the 340B discount program. The pilot was set to go into effect on Jan. 1.

A U.S. District Court judge in Maine had paused the program after the American Hospital Association and several hospital systems filed a lawsuit arguing the government rushed to start the pilot, which would allow several drugmakers to offer rebates to hospitals after a medicine is dispensed, instead of providing discounts at the time of purchase.Continue to STAT+ to read the full story…

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