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in 340B Health News Releases

WASHINGTON, D.C.— Today, the Health Resources & Services Administration (HRSA) referred a seventh drug company for potential fines for its continued violations of federal law requiring 340B drug pricing program discounts on eligible drugs dispensed at community pharmacies. HRSA sent a notice to Boehringer Ingelheim (BI) informing the drugmaker that the agency has referred its case to the Department of Health and Human Services Office of Inspector General (OIG). BI is one of 16 companies that has imposed or announced limits on 340B pricing to safety-net providers through community pharmacy partnerships. In September 2021, HRSA sent similar referral notices to Eli LillyAstraZenecaNovartisNovo NordiskSanofi, and United Therapeutics. HRSA has concluded these companies’ actions violate the 340B statute and is asking the OIG to determine whether the drugmakers are liable for civil monetary penalties (CMPs) for “knowingly and intentionally” overcharging 340B hospitals and other providers. If assessed, these penalties can total nearly $6,000 per violation.

The following statement is attributed to 340B Health President and CEO Maureen Testoni:

“We applaud HRSA for its steadfast commitment to enforcing the 340B law against drug companies denying or placing conditions on mandated 340B discounts to safety-net hospitals, health centers, and clinics. Boehringer Ingelheim and the six companies previously referred to the OIG continue ignoring the government’s determination that they are breaking the law and refusing HRSA’s direction to restore 340B pricing. We call on the OIG to respond to the overwhelming evidence that these companies are knowingly and intentionally overcharging hospitals. It is time to impose the steep financial penalties that the 340B law requires.”

“Safety-net hospitals and their patients are suffering mounting harm because of these unilateral and unlawful drug company restrictions on 340B pricing. If these 16 companies do not stop overcharging for 340B drugs, the government must hold all of them accountable for their actions to the fullest extent of the law.”

Contact: Richard Sorian at richard.sorian@340bhealth.org or 202-536-2285.