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Court rules for drugmakers over HHS in 340B fight over contract pharmacies

January 31, 2023

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Providers and drug manufacturers have been at odds for years over the 340B drug discount program, which requires pharmaceutical companies to give discounts on outpatient drugs for providers serving low-income communities.

Such providers usually have narrower margins, meaning the drug discounts from the program, which was established in 1992 to lower drug prices for safety-net providers, can be a financial help.

However, in 2020 some drugmakers stopped giving the 340B ceiling price on their products sold to such providers and dispensed through contract pharmacies. Others limited sales by selling products only after a covered entity demonstrated 340B compliance or shared specific data with them.

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