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Association Urges HHS to Prevent Harmful Drug Manufacturer Actions

On Aug. 28, the association sent a letter to Health and Human Services (HHS) Secretary Alex Azar urging his department to intervene to prevent drug manufacturers from restricting access to life-saving drugs in the 340B Drug Pricing Program.

Drug manufacturers such as Eli Lilly and AstraZeneca recently have sent letters informing covered entities that the companies will cease shipping 340B-priced drugs to their contract pharmacies, The association believes these actions violate manufacturers’ statutory obligation to provide 340B drugs to covered entities and will significantly reduce access to necessary drugs for the nation’s vulnerable populations.

Further, three other manufacturers have begun requiring biweekly data submission on all contract pharmacy claims. These data requests pose an undue administrative burden on hospitals already trying to stay afloat during the COVID-19 pandemic.

In addition to its letter to HHS, the association signed a joint association letter asking the agency to require manufacturers to comply with the 340B statute. This letter was sent on behalf of six national hospital associations, as well as the American Society of Health-System Pharmacists.

Contact Senior Director of Policy Erin O’Malley at eomalley@essentialhospitals.org or 202.585.0127 with questions.

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About the Author

Abigail Painchaud is a policy associate at America's Essential Hospitals.

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