340B Drug Discount Program Garners AG Concern and Recommendations

  • A bipartisan coalition of 23 AGs (21 Democrats and 2 Republicans) sent a letter in response to a request for information issued by a bipartisan group of U.S. Senators to strengthen the 340B Drug Pricing Program, which requires drug manufacturers participating in Medicaid and Medicare to provide discounted drugs to covered entities that serve financially vulnerable patients.
  • The AGs assert in their letter that drug manufacturers are increasingly imposing potentially unlawful restrictions on 340B entities, such as restricting entities’ ability to utilize retail community pharmacies or mail order pharmacies, commonly known as “contract pharmacies,” to dispense medications to their patients.
  • The AGs ask Congress to give the Health Resources Services Administration (HRSA), which oversees the 340B program, sufficient authority to promulgate regulations that would ensure 340B entities are able to utilize contract pharmacies to dispense drugs to patients.