AbbVie became the third drugmaker in recent months to restrict 340B-discounted drugs to contract pharmacies, the latest company undeterred at the prospect of federal fines.
AbbVie announced Dec. 29 that starting Feb. 1 it will cut off sales of 340B-discounted products to contract pharmacies that don’t submit limited claims data. It is the 11th company to cut off sales to contract pharmacies since summer 2020.
“In recent years, the 340B program has increasingly suffered from abuses that undermined that goal and call into question whether patients benefit from 340B discounts,” the company said in its notice.
Starting Feb. 1, 340B-covered entities must submit limited claims data on contract pharmacy utilization with the goal of identifying duplicative discounts between 340B and Medicaid, the company told Fierce Healthcare.
The policy doesn’t include community health centers, and AbbVie said any 340B entity that doesn’t have an in-house pharmacy can designate one contract pharmacy to dispense AbbVie products.
AbbVie is the third drugmaker in the past two months to impose such a restriction, joining UCB and Amgen. It is the 11th company overall to restrict sales to contract pharmacies and escalates a growing feud with the federal government over the program that calls on drug companies to give discounts to safety net providers in exchange for participation in Medicare and Medicaid.
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340B advocates slammed the company’s decision, saying it will hurt safety net providers.
“The federal government has made it clear that drug companies cannot impose unilateral conditions on the 340B drug discounts that the law mandates,” said Maureen Testoni, president and CEO of advocacy group 340B Health. “Drugmaker demands for millions of patient drug claims through a process that exposes hospitals to potential federal privacy law violations and other legal risks is a prime example of an unlawful condition.”
AbbVie’s decision comes as the federal government continues to battle six drugmakers in court over similar restrictions.
The Health Resources and Services Administration (HRSA) warned six drugmakers last year over contract pharmacy restrictions. However, five of the drug companies have challenged the federal government’s authority to install any fines in three lawsuits.
HRSA did not have any comment on the latest moves by AbbVie and other companies.