340B Health


in 340B Health News Releases

WASHINGTON, D.C., JUNE 21, 2021— The Department of Health and Human Services (HHS) has announced that it is withdrawing its earlier advisory opinion on 340B community pharmacies. HHS notes that the withdrawal does not affect its ongoing efforts to enforce the 340B law on this issue against drug companies that are in violation of the statute. The following statement is attributed to 340B Health President and CEO Maureen Testoni:

“We are pleased that the Department of Health and Human Services continues moving forward to enforce the 340B statute as it demands that six drug companies stop denying required discounts to safety-net hospitals. Withdrawal of the December 2020 advisory opinion eliminates an unnecessary distraction created by drug company efforts to challenge the government’s authority to enforce the law.”

“We are pleased with HHS’s continued focus on the need to protect hospitals and their patients, and we strongly agree that drug companies are legally obligated to provide discounts to eligible hospitals on outpatient drugs dispensed at community pharmacies. Congress created 340B to support safety-net hospitals, health centers, and clinics that serve large numbers of patients with low incomes and those living in rural communities. The refusal of these six companies to comply with the law endangers patients and undermines the safety net.”

“We look forward to continuing our work to fight the abuses of the 340B program by these companies and fully support HHS actions on this vital matter.”

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