Since the 340B program’s inception in 1992, Bristol Myers Squibb has used a discount model to offer medications at cheaper prices to safety-net healthcare facilities, according to court documents. In its lawsuit, BMS said the program has “become rife with abuse” and “has grown at a rapid clip and strayed from its mission to support the care of uninsured, low-income patients.”
The New Jersey-based pharmaceutical company is requesting a federal judge to regard its 340B rebate plan as lawful and to bar HHS from constraining the rebates through enforcement actions.
Other drugmakers are making the same case.
After Johnson & Johnson announced a plan in August to offer rebates to 340B-covered entities, rather than offering upfront discounts for two drugs, the Health Resources and Services Administration spurned the plan. The HRSA deemed it illegal, and J&J revoked the plan’s implementation before filing a lawsuit in November to challenge HRSA’s decision.
Eli Lilly then filed a similar lawsuit over its 340B rebate plan, while Sanofi plans to require 340B entities to share claims data to prove program eligibility. Safety-net facilities deemed eligible will then be allotted weekly cash credits for about 20 medicines.
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