Federal Judges Issue Decisions Regarding Safety-Net Provider Drug Dispensing Methods Over the past two weeks, federal judges have issued decisions that directly impact the health and safety of underserved communities and the safety-net providers that serve them. Each decision regards whether safety-net providers are entitled to use pharmacies that are not located at the provider’s…
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On August 11, Merck issued a letter announcing its policy to stop “voluntarily” providing 340B discounts to 340B hospitals on drugs dispensed at contract pharmacies unless the hospital provides 340B contract pharmacy claims data through the 340B ESPTM platform for both Medicaid and non-Medicaid claims. Merck joins seven other drug manufacturers that have adopted similar policies based on their…
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On July 30, the U.S. District Court for the Southern District of Indiana held oral arguments in the case, Eli Lilly et al. v. Becerra et al., regarding the May 17 enforcement letter (“May 17 Letter”) that HRSA sent to Eli Lilly and other drug manufacturers informing them of HRSA’s formal determination that their actions to…
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On July 27, the U.S. House of Representatives approved an amendment to the House Appropriations Labor, Health and Human Services legislation that supports agency action against manufacturers that are not honoring contract pharmacy arrangements. The amendment was approved as part of a funding package for the next fiscal year for many federal departments, including HHS. The…
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On July 11, the U.S. House Appropriations Committee approved the fiscal year (FY) 2022 appropriations bill (the “Bill”) and accompanying report for the Department of Labor, HHS, Education, and Related Agencies. The accompanying report calls for HRSA to report on actions it is taking to (1) safeguard safety-net providers’ access to discounted drugs, including those dispensed at contract pharmacies, and…
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340B Safety net providers laud the Secretary of Health and Human Services’ (HHS) appointment of the much-awaited 340B Alternative Dispute Resolution (ADR) Board on June 21, 2021. Members of the ADR Board will serve as ADR Panelists to resolve disputes between 340B safety-net providers and drug companies. Beginning in the summer of 2020, several drug manufacturers have…
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On June 9, 2021, U.S. Department of Health and Human Services (HHS) Secretary Xavier Becerra appeared before the U.S. Senate Appropriations subcommittee. In his testimony, Secretary Becerra provided important insight into HHS’s stance regarding six drug companies’ unilateral actions to halt 340B pricing on drugs shipped to contract pharmacies. Senator Manchin stated his interest in…
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Earlier this week, the White House Office of Management and Budget (OMB) completed its review of HHS’ proposal to rescind the Trump Administration’s final rule that would require federally qualified health centers (FQHCs) to provide insulin and injectable epinephrine to low-income patients at the price the FQHC pays for those drugs under the 340B program.…
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Last week, Tennessee Governor Bill Lee signed into a law a bill that will protect 340B covered entities and their contract pharmacies from discriminatory reimbursement practices commonly employed by pharmacy benefit managers (PBMs) and third party payers and will help to bring pricing transparency to Tennessee’s healthcare system (HB 1398/SB 1617). The law prohibits…
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Family Health Centers of Kalamazoo in Kalamazoo, Michigan has been busy these past few months running back-to-back COVID-19 vaccine clinics. As of last week, FHC had run 52 clinics in the greater Kalamazoo area, administering 8,112 vaccines to people in the community. The 340B Drug Discount Program allowed FHC to serve more patients and get…
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