A federal judge last week denied a request by the Pharmaceutical Research and Manufacturers of America (PhRMA) to overturn a Colorado law aimed at protecting the 340B Drug Pricing Program. ASHP joined the American Hospital Association, 340B Health, and the Colorado Hospital Association in submitting an amicus brief in support of the state law.
Colorado’s law prevents manufacturers from restricting covered entities’ use of contract pharmacies and limits manufacturers’ ability to demand certain claims data from covered entities. In its ruling, the court rejected PhRMA’s claims that the Colorado law is preempted by federal law.
This decision is another test of state laws that protect covered entities from discriminatory manufacturer efforts to limit contract pharmacies or to condition 340B access on claims data submission. State laws that protect the program are a critical defense against manufacturer efforts to undercut it at the federal level.
“We applaud the court’s decision, which will protect the patients who rely on 340B covered entities for their care,” said Tom Kraus, ASHP vice president of government relations. “ASHP is here to assist states in developing their own 340B protections.”
The Colorado law is aligned with ASHP's 340B contract pharmacy model legislation. ASHP encourages states to consider adopting similar legislation to protect the 340B program in their state.
ASHP remains committed to safeguarding the 340B program and will continue to keep members informed about ongoing litigation and our aggressive advocacy efforts to safeguard this critical program for our members and the patients they serve.
