In Surprise Move, Biden Administration Proposes Keeping Trump’s Nearly 30% Cut in 340B Hospitals’ Drug Reimbursement

The U.S. Centers for Medicare & Medicaid Services (CMS) said today it proposes to continue a nearly 30% reduction in Medicare Part B reimbursement for hospitals’ 340B-purchased drugs.

The Biden administration said today it proposes to continue a nearly 30% reduction in Medicare Part B reimbursement for hospitals’ 340B-purchased drugs.

The Trump administration implemented the payment reduction in January 2018. Hospital groups say it costs affected 340B hospitals

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BREAKING: Supreme Court Will Take Up Case Involving Medicare Part B Cuts to 340B Hospitals

The U.S. Supreme Court this morning agreed to take up a case regarding Medicare Part B cuts to 340B hospitals. | Shutterstock

The U.S. Supreme Court this morning agreed to review a federal appeals court’s July 2020 ruling upholding a nearly 30% reduction in Medicare Part B drug reimbursement for hospitals’ 340B-purchased drugs.

The court’s decision to hear American Hospital Association (AHA)

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Boehringer Ingelheim Will Stop Shipping 340B Drugs to Hospitals’ Contract Pharmacies on Aug. 1

Hospitals call Boehringer Ingelheim’s contract pharmacy plans “appalling” while company calls for “substantial reform” of the 340B program.

Drug manufacturer Boehringer Ingelheim (BI) announced yesterday that it will stop shipping 340B-purchased drugs to hospitals’ contract pharmacies, effective Aug. 1.

Community health centers, HIV/AIDS clinics, and other federal grantee covered entities are exempt from BI’s new policy. It applies

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Judge Rejects Government’s Contention that AstraZeneca’s 340B Lawsuit Is Moot

A federal judge yesterday, acting in a lawsuit filed by AstraZeneca, vacated HHS's December 2020 advisory opinion that the 340B statute compels drug manufacturers to offer 340B pricing when covered entities use contract pharmacies to dispense covered drugs to patients.

A federal district judge in Delaware yesterday rejected the U.S. Health and Human Services Department’s (HHS) position that its withdrawal of its December 2020 advisory opinion on 340B contract pharmacy rendered drug manufacturer AstraZeneca’s claims against the opinion moot.

In

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BREAKING: HHS Withdraws 340B Contract Pharmacy Advisory Opinion, and Becerra Appoints 340B Dispute Resolution Board Members

HHS yesterday withdrew its ex-General Counsel Robert Charrow's legal advisory opinion that the 340B statute requires drug companies to offer 340B pricing when covered entities use contract pharmacies.
The U.S. Health and Human Services Department (HHS) yesterday withdrew its December 2020 legal advisory opinion on 340B contract pharmacy. Also, HHS Secretary Xavier Becerra appointed members to the 340B program administrative dispute resolution (ADR) board.
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BREAKING: Novartis Sues HRSA in Defense of its 340B Contract Pharmacy Policy

Novartis sued HRSA yesterday to stop it from enforcing its interpretation of the 340B statute's contract pharmacy requirements, and from imposing civil monetary penalties against Novartis for alleged violations. | Shutterstock
Novartis Pharmaceuticals has sued the U.S. Health Resources and Services Administration (HRSA) over the agency’s May 17 letter telling the company its restrictions on 340B pricing to covered entities that use contract pharmacies are illegal.

Please

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HHS Wants to Audit 340B Providers to See How They Use 340B Net Income

HRSA, headquartered in this suburban Washington office building, would be empowered to audit 340B covered entities to see how they use income from 340B drug purchases, under a Biden administration proposal issued today.
The Biden administration this afternoon proposed amending the 340B statute to let federal health officials audit 340B covered entities “to determine how net income from purchases under [340B] are used by the covered entity.”

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Late Breaking Developments in Lilly and AstraZeneca’s 340B Contract Pharmacy Lawsuits

A federal district judge in Indianapolis late this afternoon declined to temporarily restrain federal health officials from requiring drug maker Eli Lilly, based on a May 17 enforcement letter, to provide 340B discounts on drugs dispensed by contract pharmacies. | Shutterstock
A federal district judge in Indianapolis late this afternoon declined to temporarily restrain federal health officials from requiring drug maker Eli Lilly, based on a May 17 enforcement letter, to provide 340B discounts on drugs dispensed by contract pharmacies.
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BREAKING: Developments in Multiple 340B Contract Pharmacy Lawsuits

Eli Lilly and Sanofi yesterday filed court papers in response to HRSA's 340B contract cease and desist letters. Novo Nordisk is expected to follow suit. There could be a decision on AstraZeneca's motions as soon as tonight. | Shutterstock
Drug manufacturers Eli Lilly and Sanofi late yesterday asked federal judges for temporary protection from federal health agency orders to immediately resume offering 340B pricing on drugs shipped to contract pharmacies. Drug maker Novo Nordisk is expected to seek similar
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BREAKING: HRSA to Six Drug Makers—Your 340B Contract Pharmacy Policies Are Illegal, Resume Offering 340B Pricing Immediately

HRSA Acting Administrator Diana Espinosa sent letters this morning to six drug manufacturers telling them their 340B contract pharmacy policies are illegal and must be stopped immediately.
U.S. Health Resources and Services Administration (HRSA) Acting Administrator Diana Espinosa this morning informed six pharmaceutical manufacturers that their restrictions on 340B program pricing to covered entities that dispense medications through contract pharmacies have resulted in overcharges and are in
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