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HHS orders 6 drugmakers to repay providers for violating 340B

Dive Brief: HHS Health Resources and Services Administration called out six pharmaceutical companies Tuesday for violating rules under the 340B drug discount program, ordering them to repay affected providers for previous overcharges and warning of more penalties if they don t comply. In July 2020 some drugmakers stopped giving the 340B ceiling price on their products sold to covered entities and dispensed through contract pharmacies, while others limited sales by requiring specific data or selling products only after a covered entity demonstrated 340B compliance, according to HRSA. In letters from Diana Espinosa, acting administrator of HRSA, the agency requested AstraZeneca, Eli Lilly, United Therapeutics, Sanofi, Novo Nordisk and Novartis give an update on their plans to restart selling covered outpatient drugs at the 340B price to covered entities that dispense medications through contract pharmacies by June 1.

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Biden Action on 340B Drug Discount Program

Tuesday, May 18, 2021 On May 17, 2021, the Biden Administration took its first major action impacting the 340B Drug Discount Program. In a forceful statement, the Administration made plain its views on a major controversy that has pitted drug manufacturers against 340B covered entities for the past year - proclaiming that drug manufacturers are violating the 340B statute by restricting covered entity access to 340B discounts for drugs dispensed through 340B contract pharmacies. Background As regular readers of our blog know, for a number of years the 340B Program has been at a crossroads. The 340B Program, overseen by the Health Resources and Services Administration (HRSA), was intended to provide a safety net pipeline for individuals in need of access to out-patient drugs. However, the 340B Program grew by leaps and bounds over the last fifteen years and, for many larger hospital systems, it transformed into a major source of revenue supporting a multitude of prog

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Six drugmakers in violation of 340B statute, says HRSA

Photo: Jeff Lagasse/Healthcare Finance News Six drugmakers who have violated the 340B statute should immediately begin offering drugs at discounted prices to hospitals participating in the federal drug-pricing program, according to a letter sent to the drugmakers this week from the Health Resources and Services Administration. The HRSA maintained that the drug manufacturers in question – AstraZeneca, Eli Lilly, Novartis, Novo Nordisk, Sanofi and United Therapeutics – placed restrictions on the 340B program for hospitals that dispense drugs through contract pharmacies, and these restrictions resulted in overcharges, which are in direct violation of the statute. Various actions from the manufacturers limited beneficiaries access to discounted drugs available through the 340B program, HRSA said. Some, for instance, stopped providing the 340B ceiling price on products sold to covered entities and dispensed through contract pharmacies. Others limited sales by requiring specific

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340B Update: HRSA Notifies Six Manufacturers That They Are In Violation Of The 340B Statute | Husch Blackwell LLP

340B Update: HRSA Notifies Six Manufacturers That They Are In Violation Of The 340B Statute | Husch Blackwell LLP
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HHS awards $40 million in ARP funding to support emergency home visiting assistance

HHS awards $40 million in ARP funding to support emergency home visiting assistance
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