340B Health


in 340B Health News Releases

WASHINGTON, D.C.— On April 12, the federal government filed a notice of appeal in a court case involving drug company AstraZeneca’s restrictions on 340B drug pricing program discounts for safety-net hospitals that purchase drugs to be dispensed by community pharmacies. AstraZeneca has challenged the authority of the Health Resources & Services Administration (HRSA), which oversees 340B, to require these discounts. A lower court had vacated an enforcement letter that HRSA had sent the company, and 340B Health urged the government to appeal that decision. The development means that decisions from four courts pertaining to six drug companies’ contract pharmacy restrictions are at the appeals court level or are moving there soon.

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

“The Biden administration’s appeal of the decision in the AstraZeneca case is a crucial step forward in the ongoing battle to restore the 340B drug pricing program to its statutory foundation. The actions of AstraZeneca and 15 other drug companies to restrict 340B discounts are damaging the health care safety net and hurting the millions of low-income and rural Americans who rely on it for their care every day. Both the Trump and Biden administrations have correctly called such actions unlawful and ordered the restoration of 340B discounts for eligible drugs purchased by safety-net hospitals and dispensed in community pharmacies.”

“340B hospitals provide 60% of all uncompensated and unreimbursed care in the U.S. and 75% of hospital care for Americans with Medicaid. In many parts of the country, 340B hospitals are the only source of care for otherwise underserved communities. By limiting hospitals’ access to the resources they need to provide this care, the 16 drugmakers involved in this dispute risk causing irreparable harm to the safety net.”

“We appreciate the government’s continued vigilance in enforcing the law and protecting patients from the harmful actions of these drugmakers. A swift resolution of this dispute is in the best interests of patients, and we continue to urge the administration to use all its authority to compel compliance by these companies. This includes the imposition of civil monetary penalties by the Health and Human Services Office of Inspector General.”

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