Supreme Court Agrees With Drug Firms That 340B Providers Cannot Sue Over Prices
This article was originally published in The Pink Sheet Daily
The federal government will have to take the lead on investigating and potentially punishing past overcharging for drugs as a result of the March 29 ruling.
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Justice Ginsburg wrote two decisions in pharmaceutical related-cases over the past decade, joined the majority in opinions on the scope of patents, and dissented in decisions giving protection to generic manufacturers and speech of pharmaceutical companies. Her death could impact the outcome of cases challenging the Affordable Care Act.
U.S. Supreme Court justices’ skepticism over the right of 340B entities to sue pharmaceutical companies for overcharges does not appear to extend to states’ ability to challenge drug prices reported under Medicaid.
The Health Resources and Services Administration should publish standards and methods for calculating “ceiling” prices under the 340B drug discount program before activating new processes for settling purchasing disputes between drug firms and institutions or fining non-compliant drug companies, the Biotechnology Industry Organization urges in recent comments to the agency.