WSHA, along with 36 other state and regional associations joined an amicus (friend of the court) brief supporting the federal Health Resources and Services Administration (HRSA) in a lawsuit brought by major drug manufacturers.
The drug manufacturers sued HRSA over its refusal to allow them to substitute their own rebate models rather than providing required price discounts to eligible covered entities.
WSHA and other 340B advocates oppose the manufacturers’ proposal which would require covered entities to pay the full cost of the drugs up front and allow the manufacturers to determine if a rebate should be paid. This would significantly impact access to services for vulnerable populations and the financial viability for hospitals eligible to participate in the 340B program.
The District of Columbia District Court ruled in favor of the government’s position, but the drug manufacturers appealed to the D.C. Circuit Court, with oral arguments currently scheduled for late October.
The 340B program was established in 1992, requiring pharmaceutical manufacturers to sell covered outpatient drugs at a discounted price to health care organizations that serve a high proportion of underserved patients, including disproportionate share hospitals, critical access hospitals, federally qualified health centers and Ryan White (HIV) clinics.
The goal of the program is to allow qualifying entities “to stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services.”
WSHA opposes efforts of drug manufacturers to evade the requirement to provide price discounts and restrict or eliminate the program. WSHA will continue to advocate at both the state and federal levels of government to preserve the benefits of the 340B program.
Sincerely,
Andrew Busz
WSHA Finance Policy Director
Andrewb@wsha.org