Blog 1/7/25

New Year Begins with Flurry of New Pharma Restrictions for Medication Access

COLUMBUS, Ohio – In recent weeks, several drug manufacturers have implemented new restrictions on 340B contract pharmacies, risking access to vital medications for low-income and uninsured patients.

Boehringer Ingelheim Pharmaceuticals (BI) – which manufactures drugs that treat respiratory diseases, cancers, nervous system disorders, and more – said that it would now require covered entities, including community health centers, to designate a single contract pharmacy for 340B drugs. Additionally, BI will require the contract pharmacy to be in a 40-mile radius of the covered entity.

Similarly, Organon – which manufactures a range of drugs focused on reproductive care, contraception, and hormone replacement therapy (HRT) – said that covered entities, “regardless of whether it has an in-house pharmacy capable of dispensing 340B purchased drugs to its patients, may designate a single contract pharmacy.”

Additionally, other drug manufacturers, such as Sanofi and Brystol Myers Squibb, have attempted to implement rebate model programs for covered entities using the 340B Drug Pricing Program. In recent weeks, Sanofi paused their program, following a federal lawsuit. Brystol Meyers Squibb – joining Johnson & Johnson and Eli Lilly – recently filed another federal lawsuit in an effort to implement their rigid rebate model program.

By issuing these new restrictions with little time for contract pharmacies and covered entities to respond, these drugmakers risk cutting off the supply of medications for patients across the country, including patients at community health centers like Equitas Health.

Nick Saltsman, PharmD, RPh, AAHIVP (he/him), Chief Pharmacy Officer at Equitas Health said: “Drugmakers are attempting to create obstacles for community health centers to stop them from realizing the benefits of the federal 340B Drug Pricing Program. Big Pharma should be ashamed of its blatant greed and disregard for community health programs, which play a direct role in improving healthcare outcomes for millions of patients nationwide.”

The federal 340B Drug Pricing Program requires drug makers participating in Medicaid to sell outpatient drugs at discounted prices to healthcare organizations that serve low-income and uninsured patients. Covered entities, such as Equitas Health, then reinvest pharmacy proceeds into vital healthcare programs such as primary care, specialized HIV care, behavioral health, and dentistry.

Rhea Debussy, PhD (she/her), Director of External Affairs at Equitas Health, said: “The US Dept. of Health and Human Services (HHS) has confirmed that the list price for thousands of drugs are increasing far faster than the rate of inflation. With average drug price hikes at over 15% in the past few years, patients are increasingly reliant on programs like the 340B Drug Pricing Program. However, some companies seem far more interested in profits over patients.”

The federal 340B Drug Pricing Program is a critical lifeline for community health centers that deserves protection from the pharmaceutical industry’s attempts to undercut it. Equitas Health calls on our elected officials to put patients first and put a stop to Big Pharma’s growing list of unfair and unnecessary hurdles for contract pharmacies.

David Ernesto Munar (he/him), President and CEO at Equitas Health added: “Drug manufacturers once again are showing their willingness to prioritize profits over patient care. By chipping away at the 340B Drug Pricing Program, Big Pharma is threatening the long-term ability of community health organizations to provide the quality, affirming care that our patients deserve. Equitas Health will continue to sound the alarm about these illegal measures and demand that our elected officials move swiftly and decisively to maintain the integrity of the 340B program.”

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ABOUT EQUITAS HEALTH

Established in 1984, Equitas Health is a regional nonprofit community healthcare system. A federally-designated Community Health Center, it is one of the largest LGBTQ+ and HIV/AIDS serving healthcare organizations in the United States. With 22 offices in 13 cities, Equitas Health serves tens of thousands of patients in Ohio, Kentucky, and West Virginia each year through patient-centered, integrated, and cutting edge services, including primary and specialized medical care, pharmacy, dentistry, mental health and recovery, HIV/STI treatment and prevention, PrEP/PEP, Ryan White/HIV case management, care navigation, advocacy, and other community health initiatives. The Equitas Health Pharmacy is an integral and essential part of the health center’s comprehensive care and business models, reinvesting 100% of profits back into the organization’s programs and services. Equitas Health operates pharmacies serving patients in Ohio and Texas. For more information, visit equitashealth.com or find them on Facebook, Twitter, or Instagram.