Hospital groups want HHS Secretary Xavier Becerra to impose civil fines on six drug companies for refusing to offer 340B discounts on drugs dispensed by contract pharmacies. | Gage Skidmore

Hospital Groups Ask HHS to Start Fining Pharma Over 340B Pricing Denials

Six hospital groups asked U.S. Health and Human Services (HHS) Secretary Xavier Becerra on Tuesday to state “immediately and definitively” that six drug manufacturers’ refusals to offer 340B discounts on drugs dispensed by contract pharmacies are illegal.

They also asked Becerra to impose civil monetary penalties on the companies—AstraZeneca, Eli Lilly, Novartis, Novo Nordisk, Sanofi, and United Therapeutics. The HHS Office of Inspector General can impose sanctions of up to $5,000 for each instance of knowing and intentional overcharging of a 340B covered entity. Under the 2017 340B program final rule that authorizes the civil fines, the term “instance” is defined as “any order for a covered outpatient drug, by NDC, which results in a covered entity paying more than the ceiling price.”

Six hospital groups asked U.S. Health and Human Services (HHS) Secretary Xavier Becerra on Tuesday to state “immediately and definitively” that six drug manufacturers’ refusals to offer 340B discounts on drugs dispensed by contract pharmacies are illegal.

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