Bipartisan Group of Attorneys General Urge Federal Government to Enforce Mandated Drug Discounts

  • A bipartisan group of 29 AGs, led by California AG Xavier Becerra, Connecticut AG William Tong, Kansas AG Derek Schmidt, and Nebraska AG Doug Peterson, sent a letter to the U.S. Department of Health & Human Services (“HHS”) Secretary Alex Azar regarding enforcement of the 340B Drug Pricing Program, which requires pharmaceutical companies, as a condition of coverage by Medicaid and Medicare Part B, to enter into Pharmaceutical Pricing Agreements (“PPAs”) with HHS that obligate them to offer each covered medication below an applicable ceiling price to healthcare providers serving uninsured and low-income patients.
  • The letter urges HHS to hold accountable drug manufacturers refusing to provide discounts to federally qualified health care providers as required under the 340B Drug Pricing Program, including by requiring such companies to reimburse eligible healthcare providers or terminating the companies’ PPAs, which will terminate their eligibility for Medicaid and Medicare Part B coverage.
  • As previously reported, AG Becerra has been nominated to serve as HHS Secretary in the incoming Biden Administration.