The U.S. Health Resources & Services Administration (HRSA) referred six drug manufacturers to the U.S. Health and Human Services Department of the Office of the Inspector General (HHS OIG) regarding their refusal to offer 340B discounts to 340B covered entities.
WASHINGTON (October 21, 2021) AIDS Healthcare Foundation (AHF) welcomed and praised recent action taken to defend the 340B drug pricing program by the U.S. Health Resources & Services Administration (HRSA). On September 22, 2021, HRSA referred six drug manufacturers to the U.S. Health and Human Services Department of the Office of the Inspector General (HHS OIG) for their refusal to offer 340B discounts to 340B covered entities.
340B has helped provide low-cost medications and better health outcomes for millions of Americans and the nonprofit clinics and hospitals that serve them. The companies being referred are AstraZeneca, Eli Lilly, Novartis, Novo Nordisk, United Therapeutics, and Sanofi. The move is a significant step in the fight to protect the program from drug companies who have refused to comply with requests from HRSA to resume offering 340B pricing to contract pharmacies. HRSA previously warned each of the manufacturers in letters dated May 17 that their refusal to offer discounts through contract pharmacies “have resulted in overcharges and are in direct violation of the 340B statute.”
On October 4, 2021 HRSA again moved to protect the rights to 340B access by warning drug manufacturer Boehringer Ingelheim (BI) that its restrictions on 340B pricing when hospitals use contract pharmacies are illegal and must end immediately, or BI could face civil monetary penalties. This continued action to protect 340B is a step in the right direction for ensuring the continuation of a program that has been in place for 25 years.
John Hassell, National Director of Advocacy at AIDS Healthcare Foundation, praised HRSA’s aggressive stance in protecting the program, stating that “the 340B program is a lifeline that costs taxpayers nothing and allows nonprofit safety net providers to obtain prescription drugs at below-retail prices. With 340B savings, Ryan White HIV clinics and other covered entities can stretch their grant funds, offer a wider range of services, and improve the quality of care for under-insured vulnerable populations, such as people living with HIV. We thank HRSA for their recent action to hold drug companies accountable and protect this vital program.”
