Senate Democratic Chairs-in-Waiting Waste No Time Going to Bat for 340B Providers

The incoming Democratic chairs of two key U.S. Senate committees want the federal agency in charge of the 340B program “to take immediate action to clarify that implementation of a rebate model by [drug] manufacturers would violate a material condition of the 340B Drug Pricing Program.”

In a Jan. 8 letter to outgoing U.S. Health and Human Services (HHS) Secretary Alex Azar, Sens. Patty Murray (D-Wash.) and Tammy Baldwin (D-Wis.) said drug industry technology vendor Kalderos’ service to let manufacturers pay back-end drug rebates instead of up-front 340B drug discounts “violates both the spirit and the letter” of federal law, and “would significantly threaten the ability of 340B covered entities to access 340B savings and could result in denial of 340B pricing altogether.”

The incoming Democratic chairs of two key U.S. Senate committees want the federal agency in charge of the 340B program “to take immediate action to clarify that implementation of a rebate model by [drug] manufacturers would violate a material condition of the 340B Drug Pricing Program.”

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