Merck to withhold 340B discounts unless claims data is provided

Merck has become the latest drugmaker to limit discounts on 340B drugs, saying it will stop giving 340B discounts on certain drugs unless hospitals provide claims data.

The drugmaker sent a letter Aug. 12 to hospitals participating the 340B drug discount program saying that it will no longer voluntarily honor 340B discounts or chargebacks for contract pharmacies that have not begun to provide 340B claims data, unless the hospital-covered entity lacks its own in-house pharmacy and designates a single contract pharmacy.

Merck established a voluntary integrity program in 2020 to prevent duplicate discounts for both Medicaid and 340B, but it didn't garner enough participants to continue. If hospitals don't join the integrity program, Merck will withhold the discounts for most contract pharmacies, starting Sept. 1.

Several court rulings are slated to take place in the coming months to determine whether Merck and other drugmakers' efforts to limit 340B discounts are legal.

"Drug companies should not impose conditions on hospitals eligible for 340B discounts, including demanding access to patients’ drug claims," Maureen Testoni, CEO of 340B Health, a group representing more than 1,400 340B hospitals, said in a statement. "Merck’s leaders should withdraw their threat and continue to abide by the law."

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