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Sens. Murray and Baldwin Urge HHS to Protect the 340B Program

January 15, 2021

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CONTACTS
Jason Kleinman, Senior Legislative Analyst, Govt. Relations

Sens. Patty Murray (D-WA) and Tammy Baldwin (D-WI) sent a letter to Department of Health and Human Services (HHS) Secretary Alex Azar on Jan. 8 expressing concerns about an effort from several drug manufacturers to use the services of Kalderos, a third-party vendor, to replace the current upfront discount with a rebate model for eligible drugs purchased through the 340B program.

“The safety net health care providers who could suffer as a result of this move are a lifeline to patients across the country, and are on the frontlines of the ongoing pandemic and many other public health crises,” the letter states. “We urge HRSA to include a review of the Kalderos rebate model as part of this effort. HRSA has long recognized that safety-net providers should not bear the burden of waiting for the discounts to which they are entitled under the 340B statute. We believe a rebate model violates both the spirit and the letter of the law, which requires manufacturers to offer 340B pricing to 340B-covered entities, and we call on HRSA to take action to prevent its implementation.”

Over 200 members of Congress sent a letter to Secretary Azar in November urging HHS to prevent this type of change from being implemented [see Washington Highlights, Nov. 13, 2020]. The AAMC also highlighted its concern about changing the program to a rebate model in an Oct. 30, 2020, letter in support of the 340B program [see Washington Highlights, Oct. 30, 2020].

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