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Latest 340B ruling delivers blow to providers

May 24, 2024
Contributed by: Reid Stephan
An appellate court ruled in favor of drug manufacturers, allowing them to impose conditions on pharmacies receiving discounted drugs under the 340B program. This decision upholds a previous district court ruling that sided with Novartis Pharmaceuticals and United Therapeutics, who had sued the Department of Health and Human Services (HHS) in 2021. The 340B Drug Pricing Program requires drugmakers to provide discounts to providers serving low-income populations. However, pharmaceutical companies argue that providers abuse these discounts, especially when partnering with multiple pharmacies. The HHS had argued against the restrictions, issuing enforcement letters and threatening fines. The court's decision acknowledges drugmakers' concerns regarding potential abuses in the program but also noted that any conditions imposed by drugmakers must not violate the 340B statute. Provider groups oppose the ruling, arguing it jeopardizes access to discounted medications for disadvantaged patients.
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