LANSING, Mich. — Michigan Attorney General Dana Nessel recently joined a bipartisan coalition of attorneys general urging the U.S. Department of Health and Human Services (HHS) to hold accountable drug manufacturers that are unlawfully refusing to provide discounts to federally qualified health centers, hospitals and other providers that serve vulnerable patient populations through the 340B Drug Pricing Program.
The 340B Drug Pricing Program provides discounts to covered healthcare providers that serve uninsured and low-income patients, and helps these providers keep costs low even as prescription drug prices rise.
In a letter to HHS Secretary Alex Azar, the attorneys general argue that by withholding or threatening to withhold these critical discounts, drug manufacturers Eli Lilly & Co., AstraZeneca PLC, Sanofi SA, Novartis Pharmaceuticals, Merck & Co., United Therapeutics Corp. and others put low-income patients at risk of losing access to affordable medications while communities continue to battle the COVID-19 pandemic.
“Drug companies are undermining this critical program at a time when providers are struggling to serve their communities and many families are likewise struggling to make ends meet at home,” Nessel said in a provided statement. “This pandemic has taken a toll on our nation’s economy and health, and for these companies to deliberately disobey government rules by withholding discounts and resources vulnerable patients rely on is unconscionable. My colleagues and I urge the Department of Health and Human Services to act now to end these unlawful actions and require these drug manufacturers to provide these essential mandated discounts.”
As a condition of having their drugs covered by Medicaid and Medicare Part B, Congress required drug manufacturers to enter into Pharmaceutical Pricing Agreements (PPA) with the HHS to limit the amount public hospitals, community health centers, and others serving low-income patients have to pay for medications.
Instead of complying with their obligations, the attorneys general said Eli Lilly & Co., AstraZeneca PLC, Sanofi SA, Novartis Pharmaceuticals, Merck & Co., United Therapeutics Corp. and others have unlawfully refused to provide discounts.
Under the 340B Drug Pricing Program, HHS has the authority to address violations of the program by drug manufacturers, a press release explained.
In sending the letter, Nessel is joined by the attorneys general of California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Iowa, Kansas, Maine, Maryland, Massachusetts, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Virginia, Washington, Wisconsin and the District of Columbia.
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