It’s not surprising that pharmaceutical companies are disregarding the rules for discounting drug prices at hospitals serving low-income populations. What is concerning is that HHS has done nothing to penalize them about this violation. Now, Ed Silverman, STAT, reports that at least 25 state attorneys general are suing HHS to penalize the drug companies.
The discounts the pharmaceutical companies are supposed to offer are part of a federal program–340B–to ensure that hospital patients with low incomes can afford their outpatient drugs. About 12,700 hospitals participate in the program.
But, pharmaceutical companies do not like it when hospitals do not dispense these drugs themselves. Many hospitals send the drugs to retail pharmacies for pickup or delivery. As a result, drug companies do not see patient claims data.
Many advocates argue that the drug companies are violating federal law. At the same time, the pharmaceutical companies are making it harder for low-income populations to get needed drugs, in the middle of a pandemic, no less.
The attorneys general say that the drug companies have no authority to make these data demands. HHS should not allow them to flout the law. Pharmaceutical companies that are denying hospitals 340B discounts include Novartis, Eli Lilly, AstraZeneca, Novo Nordisk, Sanofi and United Therapeutics.
Republicans and Democrats support the 340B drug discount program. But, the agency at HHS in charge of overseeing the 340B program, said it did not have the authority to enforce the discounts. Since then, hospitals and hospital pharmacists have sued HHS for not acting.
PhRMA, the trade group that represents the pharmaceutical companies, argues that the 340B program does not have the force of law.
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