Chapel Hill, N.C.-based UNC Health hospitals have voluntarily dismissed two lawsuits against Humana over alleged 340B drug underpayments, according to July court filings.
UNC Health Care System and affiliated hospitals dismissed their case against Humana and ChoiceCare Network July 17 in the U.S. District Court for the Middle District of North Carolina. Separately, Blue Ridge Healthcare Hospitals, doing business as UNC Health Blue Ridge, dismissed its case against Humana that same day in the U.S. District Court for the Western District of North Carolina. Both cases were dismissed with prejudice, and the parties will bear their own attorneys’ fees and costs.
The UNC entities filed the lawsuits in June 2025, alleging Humana underpaid hospitals for drugs purchased through the 340B program between 2018 and 2022. The health systems claimed Humana reimbursed 340B claims under their Medicare Advantage agreements at a rate of average sales price minus 22.5%, instead of the established rate of average sales price plus 6%.
The complaints said, during this period, Humana applied the payment reduction due to “faulty rationales,” including an assumption that CMS did the same in fee-for-service Medicare.
“Defendant thus incorrectly believed it could likewise impose the improper payment reduction under the agreement’s terms,” one lawsuit said.
The lawsuits pointed to a 2022 Supreme Court ruling that found CMS lacked the authority to cut Medicare reimbursement rates for 340B drugs. Following that decision, CMS made lump-sum payments to affected hospitals in early 2024.
Blue Ridge sought more than $2.3 million in damages. UNC also accused Aetna of similar conduct in June 2025. That case is still ongoing.
Becker’s contacted Humana for comment and will update this story if more information becomes available.
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