Westbank Louisiana News

U.S. Senator Bill Cassidy, M.D. (R-LA), the ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee, has requested information from two drug manufacturers as part of his ongoing investigation into the 340B Drug Pricing Program.

The 340B program requires drug manufacturers participating in Medicaid to sell outpatient drugs to covered entities at significantly discounted prices. This allows these entities to generate savings and stretch federal resources further.

In 2010, the Health Resources and Services Administration issued new guidance allowing covered entities to enter into agreements with an unlimited number of contract pharmacies. Consequently, the number of contract pharmacies in the 340B Program increased from 789 in 2009 to 25,775 in 2022. This expansion has led to disagreements regarding the use of contract pharmacies by covered entities for dispensing 340B drugs.

Since 2020, several drug manufacturers have imposed restrictions on covered entities dispensing 340B drugs through multiple contract pharmacies. These restrictions aim to reduce unlawful duplicate discounts and diversion of drugs to ineligible patients but limit covered entities' ability to dispense drugs from more than one pharmacy.

Eli Lilly and Amgen are among the manufacturers imposing such restrictions. Senator Cassidy is seeking information from these companies to understand their justifications for the restrictions and how they affect the distribution of 340B drugs.

Since launching his investigation in September 2023, Cassidy has sent letters to various participants in the program, including hospital covered entities, community health centers, and contract pharmacies.

Read the full letter to Eli Lilly here and Amgen here.

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