AbbVie imposes 340B pricing restrictions at community pharmacies

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Drug company AbbVie has told safety-net hospitals it will stop offering 340B drug pricing program discounts on drugs dispensed at community-based pharmacies starting Feb. 1 if the hospitals do not agree to turn over patient claims data for those pharmacies to the company. 

"Beginning February 1, 2022, AbbVie will implement a 340B program integrity initiative designed to address persistent abuses caused by the unwillingness of covered entities and their contract pharmacies to provide sufficient claims data to prevent prohibited and improper duplicate discounting on AbbVie products," the company said in a December 29 letter to 340B covered facilities.

"This initiative will not block access to 340B priced medicines for any covered entity of the 340B program and – critically – patients will continue to have uninterrupted access to AbbVie's medicines."

AbbVie, the maker of Humira, wants 340B hospitals to register with 340B ESP, a web-based platform where they can submit requested claims data.

WHY THIS MATTERS

AbbVie is the 11th drug company to impose 340B pricing restrictions on drugs dispensed at community pharmacies. 

340B Health president and CEO Maureen Testoni said, "AbbVie's decision to join the ranks of drug companies that are violating federal law will intensify the damage that 340B pricing refusals are having on the healthcare safety net and hospitals' ability to care for their patients in need. The federal government has made it clear that drug companies cannot impose unilateral conditions on the 340B drug discounts that the law mandates. Drugmaker demands for millions of patient drug claims through a process that exposes hospitals to potential federal privacy law violations and other legal risks is a prime example of an unlawful condition."

THE LARGER TREND

The Supreme Court in November heard oral arguments over 340B payments for hospitals' outpatient drugs.

The American Hospital Association and several other organizations and health systems originally brought the case in 2018, after the Trump administration issued a final payment rule that decreased the amount of reimbursement hospitals received from the 340B drug payment program by about 30%. 

340B Health said two federal district courts have prohibited drug company restrictions or conditions on discounts.

ON THE RECORD

"At the urging of more than 850 safety-net hospitals, the government is appealing a third federal district court decision that did not agree with the government on this issue" Testoni said. "We applaud the government for continuing its strong defense of the 340B law and its authority to enforce that law against noncompliant drug companies. This unlawful drug company behavior must stop."

Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com