Late last year, your advocacy pushed the Ohio General Assembly to pass Senate Bill 263, which prohibits insurance companies and pharmacy benefit managers from imposing discriminatory pricing and other contract terms on 340B Covered Entities like Equitas Health. This legislation, which went into effect in April, is critical for 340B covered entities to continue to reinvest savings from the 340B program into high quality, affordable programs and services to patients across the state of Ohio.
Reminder: What is 340B?
The fight to protect 340B continues.
Since last summer, drug companies have taken steps to undermine the 340B program. From imposing restrictions on pricing to covered entities for drugs dispensed through community pharmacies, to an outright refusal to provide drugs at 340B prices, these actions have negatively affected both patients and providers and are in direct violation of federal law. Covered entities, patients, and advocates across the country have taken considerable actions to address the unlawful actions of manufacturers, including
filing suit, contacting members of Congress, and urging Health and Human Services Secretary Xavier Becerra to step in and prevent manufacturers from comprising the program any further.
This week, Health Resources and Services Administration (HRSA) Acting Administrator Diana Espinosa sent letters to six pharmaceutical manufacturers stating, “HRSA has determined that their policies that place restrictions on 340B Program pricing to covered entities that dispense medications through pharmacies under contract have resulted in overcharges and are in direct violation of the 340b statute.” 1 HRSA also determined that the manufacturers must immediately begin offering their covered outpatient drugs at the 340B ceiling price through their contract pharmacy arrangements and must also credit or refund all covered entities from overcharges that have resulted from their actions and unlawful policy changes. The latest action taken by HRSA is a significant policy win for patients and covered entities.
We are grateful for Acting Administrator Espinosa’s action on behalf of our stakeholders and remain committed to protecting the integrity of the 340B Program