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End Delay of 340B Program Ceiling Price, Civil Monetary Penalties Rule

FOR IMMEDIATE RELEASE

WASHINGTON—We find entirely unacceptable today’s decision by the Health Resources and Services Administration (HRSA) to put off for more than a year rules to protect patients and hospitals from drug company overcharges.

Federal scrutiny of manufacturer pricing practices has found overcharges in the 340B Drug Pricing Program. These overcharges undermine the program’s ability to make drugs affordable for vulnerable patients and increase costs for their hospitals, which already operate with thin margins.

We have waited too long for simple measures to hold drugmakers accountable in the 340B program. Hospitals and other covered entities comply with significant program oversight, including more than 800 federal audits since 2012. Manufacturers have faced only 11 audits since 2015.

We need to level the playing field, and these rules on ceiling prices and civil monetary penalties are a reasonable first step toward that goal. We call on HRSA to revisit its decision and put these rules in place immediately.

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About America’s Essential Hospitals
America’s Essential Hospitals is the leading champion for hospitals and health systems dedicated to high-quality care for all, including the most vulnerable. We support our 325 members with advocacy, policy development, research, and education. Communities depend on essential hospitals to provide specialized, lifesaving services; train the health care workforce; advance public health and health equity; and coordinate care. Essential hospitals innovate and adapt to lead the way to more effective and efficient care. Learn more at essentialhospitals.org.

Contact:
Carl Graziano
cgraziano@essentialhospitals.org
202.585.0102

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