This week, a federal appeals court upheld a Louisiana law prohibiting drug manufacturers from discriminating against hospitals that use contracted pharmacies in the 340B Drug Pricing Program.
Aligning with model legislation created by ASHP and 340B Health, the Louisiana law aims to stop drug manufacturers from providing 340B prices only to in-house pharmacies and not to contracted community pharmacies. AstraZeneca, Abbvie, and PhRMA challenged the law. The appeals court upheld the district court’s ruling in favor of the hospitals, finding that the law falls within well-established state regulation of pharmacies.
ASHP filed an amicus brief in this case with our partners at the American Hospital Association, 340B Health, America’s Essential Hospitals, and the Children’s Hospital Association. To date, ASHP has submitted over 40 amicus briefs to defend state 340B contract pharmacy laws. ASHP will continue to advocate against any and all manufacturer efforts to undermine the program, including attempts to unilaterally impose conditions on access to 340B prices by requiring claims data, rebates, contract pharmacy limitations, etc.
“We applaud the court for upholding the law, which protects hospitals from manufacturers’ attempts to undercut 340B,” said Tom Kraus, ASHP vice president of government relations. “ASHP will continue to push back aggressively against manufacturer attempts to unilaterally manipulate the 340B program to reduce its value to providers and their patients.”
