On Dec. 9, the U.S. Supreme Court denied the Pharmaceutical Research and Manufacturers of America (PhRMA)’s request for review that sought to overturn an Arkansas law prohibiting drug manufacturers from imposing restrictions on contract pharmacies participating in the 340B Drug Pricing Program. This decision leaves in place a lower court decision that upheld the Arkansas law.
The Supreme Court’s decision to deny review of the filing is a victory for 340B covered entities. The Health Resources and Services Administration (HRSA), the federal agency overseeing the 340B program, previously attempted to block manufacturer-imposed contract pharmacy restrictions at the federal level. However, the courts found manufacturers may impose some restrictions on contract pharmacies. The court also ruled that HRSA’s policy prohibiting such restrictions was unlawful. The decision by the Supreme Court leaves in place a decision from the U.S. Court of Appeals for the 8th Circuit that found states may set more aggressive 340B protections than HRSA is permitted to enact.
In 2021, Arkansas became the first state to pass a law prohibiting pharmaceutical manufacturers from restricting access to 340B discounts for contract pharmacies. Manufacturers since have tested legal arguments against the law, which has become a model for seven other states that have passed similar contract pharmacy protections.
Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.
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