Federal Data Show 340B Sales Hit $43.9 Billion in 2021, Drug Industry Consultant Reports

screenshot of 2021 drug purchases at 340B discounted prices document
DSH hospitals accounted for 78.1% of all 340B program purchases in 2021, according to federal data obtained by Drug Channels Institute under the Freedom of Information Act.

Total sales in the 340B drug pricing program reached $43.9 billion in 2021, a 15.6% increase over 2020 sales and more than 3.5 times above total sales in 2015 ($12.1 billion), according to federal data obtained by Drug Channels Institute

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At Request of Senior GOP Lawmakers, GAO Studying Law That Gave Relief to Hospitals Forced Out of 340B Due to COVID-19

Government Accountability Office Building building-mounted sign
GAO is studying a new law that enables hospitals to maintain or regain their 340B eligibility despite having fallen below the minimum required Medicare disproportionate share (DSH) adjustment percentage due to COVID 19-related changes in patient mix.

The Government Accountability Office (GAO), Congress’s watchdog agency, is conducting a study of a new law that enables hospitals to maintain or regain their 340B eligibility despite having fallen below the minimum required Medicare disproportionate share (DSH) adjustment percentage due

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Health Centers Criticize Kaiser Health News Story About Profit Margins

Tony Megna outside a Genesis Health Care facility

Community health center advocates have strongly criticized a new Kaiser Health News (KHN) investigative report that found that some health centers have large profit margins.

The article found that nine of the nation’s nearly 1,400 health centers reported profit margins

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Bill Giving Medicare Drug-Price Negotiating Power Set to Become Law

President Joe Biden seated in the Oval Office
President Biden is scheduled to sign historic drug pricing legislation with implications for the 340B program later today.

President Joe Biden this afternoon is scheduled to sign legislation that for the first time will let Medicare negotiate the prices of certain costly prescription drugs and require drug makers to pay Medicare rebates when their prices outpace inflation. 

House

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Let Us Decide How to Remedy Illegal Drug Payment Cut for 340B Hospitals, HHS Asks Judge

Dept. of Health and Human Services sign and building
There were no adverse findings in nearly one quarter of provider audits conducted by HRSA, an agency within HHS.

Federal lawyers asked a judge on Friday to let federal health officials decide how to give 340B hospitals relief for illegal Medicare Part B drug payment cuts since 2018.

In papers filed in U.S. District Court for the District of Columbia

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Senate Panel Wants HRSA to Tell How It Has Responded to Drug Makers’ 340B Pricing Denials

U.S. Senate Appropriations Committee room
The U.S. Senate Appropriations Committee wants a report from HRSA "on actions taken to safeguard covered entities’ lawful access to discounted drugs.”

The U.S. Senate Appropriations Committee wants federal healthcare officials to tell it what they have done about drug manufacturers’ denials of 340B pricing when covered entities use contract pharmacies.

The committee included the directive to the U.S. Health Resources and

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340B Providers Won’t Share in $183 Million Damages Award Against Lilly for Misstating AMP

Lilly corporate center
A federal jury ordered Lilly to pay the federal and state governments millions of dollars for misstating its average manufacturer prices, but 340B providers will not get a share of the award.

A federal jury in Illinois last week ordered drug manufacturer Lilly to pay more than $61 million in damages for misstating its average manufacturer prices (AMP) and underpaying Medicaid drug rebates.  

AMP is a key component used to determine 340B

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HHS Tells Judge Unwinding Medicare Payment Cuts for 340B Drugs Needs Caution, Not Haste

USDC DC empty courtroom interior
HHS urged a federal district court in Washington, D.C., late last week not to order it to expedite a legal brief in the lawsuit over deep Medicare payment cuts for hospitals' 340B-purchased drugs.

The U.S. Health and Human Services Department (HHS) asked a federal district judge late last week not to make it rush its response to hospitals’ request for an immediate halt to a nearly 30% Medicare Part B payment cut in

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HRSA Grants 340B Enrollment Flexibility in Kentucky Due to Floods

American Red Cross disaster relief worker standing in debris
Due to severe flooding in eastern Kentucky, HRSA is letting eligible providers in the state enroll in 340B on an expedited basis.

The U.S. Health Resources and Services Administration (HRSA) is letting eligible healthcare providers in flood-devastated Kentucky enroll in the 340B program immediately instead of making them wait until the next quarterly enrollment period in October.

U.S. Health and Human Services

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Senate Rejects 340B-Related Amendment to Major Drug Pricing and Climate Change Bill

Sen. John Kennedy (R-LA) speaking on Senate floor
U.S. Sen. John Kennedy's (R-La.) failed amendment to the Inflation Reduction Act would have required health centers to make insulin and EpiPens available at or below 340B price and would have helped cover centers' direct costs of doing so. A leading health center advocate panned the amendment.

The U.S. Senate on Sunday rejected a Republican amendment to Democratic drug pricing and climate change legislation that would have required federally qualified health centers to make insulin and injectable epinephrine available to patients at or below 340B price.

But

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