Morning Briefing
Summaries of health policy coverage from major news organizations
Six Drugmakers Warned To Reinstate 340B Discounts Or Face Steep Fines
Stat: Drug Makers Must Offer Discounts To Safety-Net Hospitals Or Face Penalties
After a year of controversy, the Health Resources and Services Administration notified six large drug makers that they violated the law by ending discounts to a federal program providing discounted medicines to hospitals and clinics serving mostly low-income populations. At issue is the 340B drug discount program, which requires drug makers to offer discounts that are typically estimated to be 25% to 50% — but could be much higher — on all outpatient drugs to hospitals and clinics that serve low-income populations. There are approximately 12,400 so-called covered entities, including 2,500 hospitals, participating in the program. (Silverman, 5/17)
Modern Healthcare: HHS Warns Drugmakers That Won't Give 340B Discounts To Contract Pharmacies
HHS' Health Resources and Services Administration on Monday sent letters to six drugmakers, warning them that they could face steep fines if they don't discount drug prices for pharmacies that contract with 340B providers. Pharmaceutical companies started aggressively cracking down on 340B drug discounts through contract pharmacies and demanding more data from healthcare providers last summer. They have been seemingly testing how far they could challenge HRSA guidance that allows 340B providers to receive discounts while working with multiple contract pharmacies. That led to several lawsuits from community health centers and hospital groups. (Brady, 5/17)
Fierce Healthcare: HRSA Demands 6 Drugmakers Stop Cutting Off Sales Of 340B Drugs To Contract Pharmacies
The letters appear to bring an end to an escalating feud between drugmakers and hospitals that started back in July 2020. Overall, HRSA sent letters to AstraZeneca, Eli Lilly, Novartis, Novo Nordisk, Sanofi and United Therapeutics. If the drug companies do not halt the moves, they could face a $5,000 penalty for every violation. HRSA wants the drug companies to provide an update on the situation by June 1. The letters earned major plaudits from hospital groups. “We continue to urge HRSA to ensure that the drug companies that denied appropriate discounts since these illegal practices began last year make impacted hospitals whole for the benefit of the vulnerable communities they serve,” the American Hospital Association (AHA) said in a statement Monday. (King, 5/17)
