CHA News

HRSA Orders Drug Companies to Resume Discounts to 340B Contract Pharmacies

For CFOs, finance & reimbursement staff, government relations staff, pharmacy managers 

This post has been archived and contains information that may be out of date.

The Health Resources & Services Administration (HRSA) ordered six pharmaceutical companies to resume payments to contract pharmacies participating in the 340B discount program, stating that their current policies have resulted in overcharges and are in direct violation of the 340B statute. The letters were sent to Eli Lilly, Sanofi, AstraZeneca, Novartis, United Therapeutics, and Novo Nordisk. 

In July 2020, the drug companies began denying 340B discounts for certain outpatient drugs purchased by hospitals, community health centers, and public health clinics when distributed through a contract pharmacy.   

CHA supports the decision by HRSA to preserve these payments for safety-net hospitals and protect the vulnerable communities they serve.