November 9, 2010—The U.S. Supreme Court announced yesterday that it will hear arguments on Jan. 19 in a pivotal 340B lawsuit on whether 340B providers have the right to sue drug manufacturers for alleged overcharges. The High Court agreed in late September to review a federal appellate court decision recognizing covered entities' right to sue. The case is Astra v. Santa … [Read more...]
Midterm Elections Muddle the Picture for 340B
GOP takes control of the House promising to roll back health care reform.November 9, 2010—The Republican takeover of the U.S. House last week could slow down efforts to expand 340B discounts to the inpatient setting. Its effect, however, on efforts to reverse a provision in reform barring newly eligible 340B hospitals from buying orphan drugs at 340B-discounted prices is less clear. As of Nov. 9, the GOP had 239 seats in the House to the … [Read more...]
BMS Says It Is “Required” to Pay Retroactive 340B Discounts
Confusion mounts over HRSA's decision that back payments aren't available.October 26, 2010—Bristol-Myers Squibb (BMS) says it is "required" to extend 340B discounts retroactive to Jan. 1 of this year to rural and children's hospitals that have enrolled in the drug discount program under health care reform. The drug manufacturer made the announcement in its third quarter earnings report filed with the U.S. Securities and Exchange Commission (SEC). … [Read more...]
No Retroactive Discounts for New 340B Providers, HRSA Says
Position seems to mark a reversal from previous stances in 1993 and 2009.October 21, 2010—Newly eligible rural, children's and free-standing cancer hospitals that enroll in the 340B drug discount program are ineligible for retroactive rebates on purchases dating back to the start of this year, the Health Resources and Services Administration (HRSA) says on its Web site despite the Affordable Care Act's (ACA) Jan. 1, 2010 effective date for the … [Read more...]
HHS Inspector General Releases Work Plan for the Coming Year
Several inquiries related to drug pricing are on the office's agenda.October 18, 2010—The Department of Health and Human Services Office of Inspector General's (OIG) says it will investigate next year whether the federal government is getting its fair share of 340B-related savings received by Medicare Part D drug benefit sponsors. It will also issue findings from a review already underway of state Medicaid policies and oversight activities … [Read more...]
New Report Sizes Up GPOs’ Codes of Conduct
Impacts vary among organizations and their customers and vendors, GAO concludes.October 15, 2010—Group purchasing organizations (GPOs) have made their business practices more transparent in response to recent congressional criticism, but the effects of those changes vary among the organizations, their customers and their vendors, according toa new Government Accountability Office (GAO) report. Many hospitals and other health care providers buy drugs … [Read more...]
Judge Halts Santa Clara Proceedings Pending U.S. Supreme Court Decision
Justices will hear oral arguments no sooner than mid-January.October 15, 2010—A federal district judge in San Francisco has halted proceedings in a pivotal 340B lawsuit pending a U.S. Supreme Court decision on whether 340B providers have the right to sue drug manufacturers for alleged overcharges. As previously reported in the Monitor, the High Court has decided to review a federal appellate court decision recognizing covered … [Read more...]