HRSA Tells AbbVie and Amgen Their 340B Contract Pharmacy Restrictions Are Illegal

HHS HRSA building entrance and signage
HRSA sent AbbVie and Amgen letters yesterday telling the companies their restrictions on 340B pricing when providers use contract pharmacies are illegal and must stop or the companies could face stiff civil monetary penalties.

Federal health officials told drug manufacturers AbbVie and Amgen late yesterday their restrictions on 340B pricing when providers use contract pharmacies are illegal and must end or the companies could be fined.

The Health Resources and Services Administration’s last 340B

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Breaking News

Effort Launched to Create 340C—a Separate Drug Discount Program for Health Centers and Possibly Other Entities

Advocates for Community Health wordmark
The health center advocacy group behind a proposed 340B program alternative recently slammed the 340B ACCESS Act, saying the newly introduced drug discount program overhaul bill would make it harder for members to leverage the 340B program and care for patients.

A national community health center association founded last year is launching a campaign to urge Congress to create a separate drug discount program called 340C open to health centers and perhaps rural hospitals and federal grantees.

According to a description

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Congressman Who Represents Virginia 340B Hospital Profiled by New York Times Is Exploring Oversight and Legislation

Richmond Community Hospital signage and building
U.S. Rep. A. Donald McEachin (D-Va.) is exploring legislative responses to a controversy over a health system's alleged neglect of a profitable 340B hospital in a predominantly Black neighborhood.

The congressman who represents Richmond, Va., told a health system Wednesday he rejects its reasons for ceasing intensive care, maternity, and other vital services at a Richmond hospital in a mainly Black neighborhood despite the hospital allegedly earning millions of

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With Elections Nearing, Biden Is Ordering HHS to do More to Drive Drug Costs Down

Joe Biden holding microphone
President Biden will sign an executive order today directing HHS to submit a plan in 90 days "to lower drug costs and promote access to innovative drug therapies for Medicare beneficiaries."

President Biden will sign an executive order today directing the U.S. Health and Human Services Department (HHS) “to consider additional actions to further drive down prescription drug costs,” the White House said this morning.

“Under the Executive Order, HHS will

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Hospital Group Urges MedPAC to Drop Part B Pay-Cut Proposal, Cites 340B Impact

MedPAC chart of drugs add-on amounts
The AHA wants MedPAC to drop a Medicare Part B drug reimbursement policy option it is considering making to Congress on the grounds that it will hurt 340B hospitals.

The American Hospital Association is urging the Medicare Payment Advisory Commission to abandon a Medicare Part B drug reimbursement policy option it is considering making to Congress, arguing that the proposed change would hurt 340B hospitals’ ability to provide care

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PhRMA Makes its Case for Invalidating Arkansas’s First-of-its-Kind 340B Contract Pharmacy Law

PhRMA wordmark repeated on blue background
"There is no room for states, pharmacies, or other interests to step in and try to supplant” the federal government’s exclusive control over the 340B program, PhRMA told a federal district court in Arkansas late last week.

The 340B program “has always been uniquely federal in nature” and “there is no room for states, pharmacies, or other interests to step in and try to supplant” the federal government’s exclusive control over it, the brand drug industry said

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Federal Court Clears Way for Medicare to Boost 340B Hospitals’ Part B Drug Payments

U.S. District Court Washington D.C. building
A federal district court in Washington, D.C., cleared the way for CMS to resume paying hospitals at ASP +6% for 340B drugs in as quickly as two weeks.

A federal district judge on Monday cleared the way for the Centers for Medicare and Medicaid Services (CMS) in as quickly as two weeks to resume paying hospitals at the rate of average sales price (ASP) plus 6% for their

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340B Report Holding Oct. 28 Webinar on What the Midterm Elections Mean for 340B

Vote Here sign in English, Spanish and Chinese on Election Day
340B Report is holding a webinar Oct. 28 about 340B’s future after the November midterm elections.

Five Washington insiders steeped in knowledge about the 340B program will take part in a 340B Report webinar Oct. 28 about 340B’s future after the November midterm elections.

The event from 1:00 to 2:15 p.m. Eastern is an exclusive free

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CBO Raises Changing 340B Patient Definition to Ease Pressure on Commercial Insurers

Congressional Budget Office report title page
Changing the 340B patient definition “might reduce hospitals’ and physicians’ incentives to consolidate,” the CBO says in a new analysis.

Changing the 340B patient definition “might reduce hospitals’ and physicians’ incentives to consolidate,” but to what extent “remains highly uncertain,” the Congressional Budget Office says in a new policy analysis.

House Budget Committee Chair John Yarmuth (D-Ky.) asked CBO to

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UCB Files 340B Contract Pharmacy Suit Against HHS, the Ninth Company to Do So

UCB signage and building
UCB announced it will tighten its existing 340B contract restrictions on hospitals beginning Oct. 2.

Drug manufacturer UCB has sued in federal court to overturn federal health officials’ finding that the Belgian company’s restrictions on 340B pricing when covered entities use contract pharmacies are illegal and must stop or the company could face civil monetary

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