340B Hospitals Say Pharma’s Contract Pharmacy Policies Are Costing Them “Billions of Dollars”

340B Hospital savings by drug company bar chart
340B Health says, "For just the first five of the 21 drug companies for which there is a full year of data post-restrictions, the 340B savings for hospitals decreased by an estimated $1.1 billion from 2020 to 2021."

Hospitals’ 340B savings for the first five of the 21 companies to impose conditions on 340B pricing when providers use contract pharmacies decreased by an estimated $1.1 billion from 2020 to 2021, hospital group 340B Health said in a new

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Sean Dickson, Known for 340B Research, Takes Senior Post at Health Insurance Association

Sean Dickson headshot
Sean Dickson, a drug policy expert who has published frequently cited research on 340B, has gone to work for the health insurance industry.

Sean Dickson, a drug policy expert who has published frequently cited research on the 340B program and advised both health care providers and drug manufacturers on 340B compliance, has gone to work for the health insurance industry.

Dickson, most recently

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PhRMA Discusses Joint 340B Reform Deal with Health Centers in Interview; Hospital Groups Denounce Plan

Nicole Longo headshot
“There is no way for 340B to be fixed without everybody coming to the table,” PhRMA spokesperson Nicole Longo said in an interview with 340B Report.

The fallout continues from drug makers and health centers’ decision to work together to change the 340B program, with the drug industry giving its first interview about the deal to 340B Report on Friday and several hospital groups jointly blasting

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Connecticut Governor’s First of Its Kind Three-Pronged 340B Bill Passes Hurdle in Legislature

Connecticut House of Representatives chamber
The Connecticut House might vote soon on a bill to require hospital reporting on 340B revenue, prohibit drug maker restrictions on 340B contract pharmacy use, and prohibit pharmacy benefit manager discrimination against 340B entities and pharmacies.

Connecticut Gov. Ned Lamont’s novel bill to require hospital reporting on 340B revenue, prohibit drug maker restrictions on 340B contract pharmacy use, and prohibit pharmacy benefit manager discrimination against 340B entities and pharmacies has passed its first test in the

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340B Registration for Second Quarter of 2023 Begins April 1, with COVID Public Health Emergency Set to Expire in May

Q2 340B registration
Q2 2023 registration for the 340B program starts April 1 and is expected to end April 17.

The second quarterly period this year for 340B registration of new covered entities, outpatient facilities, and contract pharmacies will begin Saturday, April 1, and is expected to end on Monday, April 17.

Normally, a quarterly 340B registration period runs from

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News Alert

Amgen Expands 340B Contract Pharmacy Limits

Amgen wordmark on building
Amgen today announced a major expansion of its conditions on 340B pricing when hospitals use contract pharmacies.

Biopharmaceutical manufacturer Amgen this afternoon significantly expanded its conditions on 340B pricing when hospitals use contract pharmacies.

Johnson & Johnson announced a similar expansion of its 340B contract pharmacy limits last month. Hospital groups slammed J&J’s new restrictions.

Amgen’s

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U.S. House Subcommittee Could Discuss 340B on Two Consecutive Days This Month

House Committee on E&C wall plaque
The House Energy & Commerce Health Subcommittee will review a draft drug shortages bill with 340B program implications.

U.S. House Republicans yesterday asked Department of Health and Human Services Secretary Xavier Becerra to testify March 29 about the Biden administration’s health care budget request.

Becerra will appear before the Energy & Commerce health subcommittee the day after it

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MedPAC’s Call to Replace Medicare DSH Formula Could Spill Over into 340B

MedPAC report to the Congress title page
MedPAC this week recommended replacing the Medicare DSH patient adjustment percentage for Medicare hospital payment purposes. The 340B program uses the same calculation as one of its hospital eligibility criteria.

Congressional Medicare advisers yesterday formally recommended replacing the formula Medicare uses to distribute extra payments to safety net hospitals that disproportionately serve low-income and/or uninsured beneficiaries.

The 340B program uses the same calculation—the Medicare disproportionate share adjustment percentage—to determine eligibility

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CMS Announces First Drugs Subject to Medicare Inflation Rebates, Issues Guidance Addressing 340B and Medicare Negotiated Drug Prices

CMS building
CMS said planned Medicare Part B premium increases are partly the result of the proposed lump sum payment for previous illegal 340B hospital cuts.

The U.S. Centers for Medicare & Medicaid Services Tuesday announced the first 27 prescription drugs that will be subject to Medicare Part B inflation rebates, a list that includes AbbVie’s blockbuster arthritis drug Humira, which generated $5.6 billion in global

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HRSA Wants Reporting Requirements on Use of 340B Savings and Compliance and Reporting Requirements on Use of Contract Pharmacies

HRSA building and signage
HRSA confirmed it will end a pandemic-era waiver program that allowed 340B drug use in certain offsite hospital locations.

The U.S. Health Resources and Services Administration has asked Congress for general rulemaking authority over the 340B program so it can establish “reporting requirements and definitions for the use of [340B] savings and contract pharmacy utilization.”

The Biden administration made

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