Gaming 340B: Sen. Grassley Wants Answers On How A Hospital Bends Drug Discount Rules
This article was originally published in The Pink Sheet Daily
The ranking member on the Senate Judiciary Committee sends a letter to the University of Alabama Hospital seeking details on how it has changed the admission status and treatment of patients to get 340B drug discounts for patients who would not have been eligible otherwise.
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A study published in Health Affairs finds that 340B hospitals and affiliated clinics registered in recent years have been in wealthier communities than previously. The authors believe the results support manufacturers’ allegation that the drug discount program is migrating to “one that enriches hospitals and their affiliated clinics.”
Lilly is one of the more active manufacturers when it comes to overseeing provider compliance with rules for the 340B drug discount program. Derek Asay, Lilly senior director of government strategy for federal accounts, spoke to “The Pink Sheet” about the company’s approach.
Top Republicans on two Senate health committees are joined by House members in seeking answers on an HHS review of entities receiving 340B drug discounts, including the process and consequences of audits and decertification.