Novartis adds new restriction to 340B discount policy

Novartis has informed 340B healthcare facilities that it will continue to honor contract pharmacy plans as long as theyre within 40 miles of its moms and dad facility, a change in practice that representatives of safety-net medical facilities say would be illegal.

” The 340B statute is crystal clear. Pharmaceutical companies that participate in Medicaid and Medicare Part B need to offer specific outpatient drugs to eligible medical facilities at no more than the ceiling price. They are not allowed to put limitations on those discount rates based on where medical facilities are dispersing the drugs to their patients,” stated Maureen Testoni, CEO of 340B Health. It is long past time for the Department of Health and Human Services to put a stop to this unlawful habits and secure safety-net healthcare facilities and the clients they serve.”.

Maia Anderson –
Monday, November 2nd, 2020
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A group representing 340B health centers says Novartis modifications are illegal.

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Pharmaceutical business that get involved in Medicaid and Medicare Part B must offer certain outpatient drugs to qualified medical facilities at no more than the ceiling cost. They are not permitted to put limitations on those discounts based on where healthcare facilities are dispersing the drugs to their patients,” said Maureen Testoni, CEO of 340B Health.

Because late June, Novartis, along with Merck, Sanofi, Eli Lilly and AstraZeneca, have told 340B health centers they might limit 340B discount rates for different reasons. In September, a bipartisan group of 243 members of the House of Representatives sent a letter to HHS Secretary Alex Azar advising him to use his authority to stop drugmakers from blocking safety-net healthcare facilities access to 340B discount rates.

In August, the drugmaker told member hospitals it would limit 340B discount rates to contract pharmacies and would need them to submit Medicare Part D and industrial health claims for patients prior to the company would supply the discount rates. Novartis stated the relocation was meant to prevent paying replicate discount rates..

In an updated letter sent to health centers Oct. 30, Novartis stated it will continue to honor agreement drug store plans as long as the pharmacies are within a 40 mile radius of its moms and dad center. Novartis said the brand-new policy is a “more focused, criteria-based technique that we think will affirm the programs intent to serve the susceptible and uninsured, while protecting the sustainability of this important program.”.

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Novartis said the policy change will ensure the 340B drug discount program advantages the designated neighborhoods and follows federal standards for medical facilities and off-site affiliates. The drugmaker stated it will not restrict the variety of contract drug stores within the 40-mile radius that are eligible..