Bass, Berry & Sims attorney Jeff Davis discussed reactions to the 340B Rebate Pilot Program scheduled to start in January. Historically, drug manufacturers have offered discounted drug prices under the 340B Drug Pricing Program to healthcare providers serving vulnerable populations through upfront discounts. The new 340B Rebate Pilot Program would permit manufacturers to shift to a rebate model for a limited number of drugs. Providers and drug manufacturers are at odds over the benefits of a rebate model, with many submitting comments to the U.S. Department of Health and Human Services.
Calling the model a “fundamental, massive shift,” Jeff added, “A lot of comments really quantify the financial impact—how many millions of dollars that providers would have to float by buying these drugs at a much higher price. But several manufacturers have taken a position that they believe in moving 340B to a rebate model.”
The full article, “Hospitals, Pharma Clash Over Burdens Under HHS Drug Rebate Plan,” was published by Bloomberg Law on September 19 and is available online.
For more on this topic, Jeff co-authored the content “HRSA Unveils Pilot Program to Allow Limited 340B Drug Rebate Models,” outlining the recent updates. He was also interviewed on the HIMSSCast podcast about the proposed change, “HIMSSCast: A look at the new 340B rebate model issues by HRSA’s Office of Pharmacy Affairs.”