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Third Circuit Court Rules for Drugmakers in 340B Contract Pharmacy Cases

Interior of Third Circuit Court courtroom
A federal appeals court ruled today that the 340B statute does not compel drug manufacturers to deliver 340B-purchased drugs "wherever and to whomever a buyer demands."

A federal appeals court in Philadelphia ruled 3-0 this morning that “Congress never said that drug makers must deliver discounted Section 340B drugs to an unlimited number of contract pharmacies.”

“By trying to enforce that supposed requirement, the government overstepped

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New York Times 340B Hospital Exposé Leads to a Vote Later Today in a Virginia House Subcommittee

Kathy Tran headshot
Virginia Del. Kathy Tran (D) says her bill to to require more accountability from 340B hospitals was prompted by The New York Times' investigation of alleged 340B program misuse detrimental to a Richmond hospital in a predominantly Black neighborhood.

A Virginia House subcommittee is voting later today on a Democrat’s bill to require more accountability from 340B hospitals—a direct consequence of The New York Times’ exposé about alleged 340B program misuse involving a Richmond, Va., hospital.

The scheduled vote

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New York State Medicaid Drug Benefit Transfer, on Ice for Two Years, Is Back

Mark Malahosky pictured with March for 340B placard
“It’s not hyperbole to say if this is put into place, we’re going to have to cut services and cut staffing," Mark Malahosky of Trillium Health says of New York State's plan to shift Medicaid managed care prescription drug benefits into Medicaid fee for service.

With a two-year implementation delay nearly over, New York State is poised to fold its Medicaid managed care prescription drug benefits into its Medicaid fee for service system on April 1. State 340B health care providers that serve high volumes

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Guthrie and Griffith, as Expected, Will Helm House E&C Subcommittees Involved in 340B

U.S. Rep. Brett Guthrie (R-KY) and Rep. Morgan Griffith (R-VA) headshots
U.S. Rep. Brett Guthrie (left) (R-Ky.) will chair the Energy & Commerce Subcommittee on Health and Rep. Morgan Griffith (R-Va.) the Subcommittee on Oversight and Investigations.

U.S. House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-Wash.) yesterday as expected announced that Rep. Brett Guthrie (R-Ky.) will chair the Subcommittee on Health and Rep. Morgan Griffith (R-Va.) the Subcommittee on Oversight and Investigations.

Guthrie said

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House GOP Bill Would Stop Additional Hospitals and Child Sites from 340B Enrollment and Make it Harder for Current Hospitals to Remain Eligible

U.S. Rep. Matt Rosendale (R-MT)
U.S. Rep. Matt Rosendale (R-Mont.) has reintroduced a bill to put a moratorium on 340B hospital growth, impose 340B reporting requirements on hospitals, and make it harder for private nonprofit hospitals to stay in 340B.

A new U.S. House bill would put a moratorium on 340B hospital growth and impose a host of reporting requirements on 340B hospitals. It would also make it much harder for private nonprofit hospitals to remain in the 340B program.

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Astellas Notifies 340B Entities About Antifungal’s Updated NDC

Astellas wordmark on building
Astellas says the old and new NDCs for its antifungal drug Cresemba are interchangeable in compliant 340B inventory replenishment models.

Drug manufacturer Astellas will let 340B covered entities using “a compliant 340B inventory replenishment model” count accumulations of its antifungal Cresemba under its old National Drug Code toward replenishment of equal quantities under the product’s corresponding new NDC, the company

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End 340B, Commentary in New England Journal of Medicine Suggests

Screenshot of commentary on Medicare overpayment for outpatient medication in the NEJM
Policymakers should consider disbanding the 340B program, a student and a professor at the Stanford University School of Medicine say in the New England Journal of Medicine.

Policymakers should consider disbanding the 340B program “given its negative reverberations for patients and markets,” a student and a professor at the Stanford University School of Medicine wrote in a commentary in the latest edition of the New England Journal

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MedPAC Votes to Recommend Ditching Medicare DSH Patient Percentage for Medicare Purposes

MedPAC wordmark
MedPAC thinks CMS should stop using the Medicare DSH patient percentage for Medicare purposes. The 340B program uses the DSH calculation for hospital eligibility purposes.

The Medicare Payment Advisory Commission, as expected, has voted to recommend that Congress should start phasing in a new way of distributing extra Medicare payments to safety net hospitals that disproportionately serve low-income and/or uninsured beneficiaries.

The proposal that

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Ryan White Clinics for 340B Access Is Dropping its 340B Dispute Resolution Lawsuit

RWC-340B wordmark
RWC-340B is dropping is lawsuit that helped prod HRSA to issue long-delayed 340B dispute resolution rules.

Ryan White Clinics for 340B Access is dropping its lawsuit that, together with a related case, led federal health officials to issue long-delayed dispute resolution rules for the 340B program in December 2020.

RWC-340B, five co-plaintiff 340B covered entities, and

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Pennsylvania Rescinds Directive that Contract Pharmacies May Not Dispense 340B Drugs to Medicaid Beneficiaries

Pennsylvania Dept. of Human Services medical assistance bulletin image referring to 340B drug pricing program
Pennsylvania rescinded a new Medicaid policy document that said contract pharmacies could not dispense 340B-purchased drugs to Medicaid beneficiaries.

The Pennsylvania Department of Human Services yesterday rescinded Medicaid policy guidance dated Dec. 22 and effective Jan. 1 that forbade 340B covered entities’ contract pharmacies from dispensing 340B-purchased drugs to Medicaid beneficiaries.

The state primary care association warned that the

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