Yetanother

Yet Another reason

Reason to
to
oppose
OPPOSESB325/HB4892
SENATE BILL 27
Congress Digs Deeper into Questionable Role of Big Contract
Pharmacies & PBMs as part of Ongoing 340B Program Investigation

01.17.2024
Ranking Member Cassidy Seeks Information from Major
Contract Pharmacies as Part of Ongoing 340B Investigation
WASHINGTON – Today, U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health,
Education, Labor and Pensions (HELP) Committee, is seeking information from major contract
pharmacies as part of his ongoing investigation into how health care entities use and generate
revenue from the 340B Drug Pricing Program.
According to the Health Resources and Services Administration (HRSA), 340B covered entities may
choose to distribute 340B drugs to patients through contract pharmacies. In 2010, HRSA issued
guidance allowing 340B covered entities to contract with an unlimited number of pharmacies, leading
to a dramatic increase in the number of participating pharmacy locations. Between 2009 and 2022, the
number of 340B retail pharmacy locations grew from 789 to 25,775, an approximately 3,166 percent
increase. The dramatic increase in the use of contract pharmacies led the Department of Health and
Human Services (HHS) Office of Inspector General and other federal oversight bodies to question the
integrity of the 340B Program and whether patients were receiving the program’s intended benefits.
Currently, the 340B Program serves as a source of revenue for many contract pharmacies. According
to the Drug Channels Institute, contract pharmacies can earn 25 to 35 percent of total 340B discounts.
Given that CVS Health and Walgreens are the two largest 340B contract pharmacy participants,
Cassidy is requesting information to understand how these companies generate revenue from 340B,
and how, or if, that revenue results in direct benefits for patients.
Readthe
Read the full
full letter
letter to
to CVS
CVS Health
Health here and Walgreens here.
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Don’t
Don’tlet
leta a
well-intended federal
well-intended program
federal meant
program for safety-net
meant hospitals
for safety-net and clinics
hospitals and become a PBM a
clinics become
giveaway! Oppose SB 325 / HB 4892 and protect economically disadvantaged West Virginians
PBM giveaway! Oppose SB 27 and protect economically disadvantaged Kentuckians ensuring ensuring
the
the 340B program continues to serve them instead of PBMs and large, out-of-state chain
340B program continues to serve them instead of PBMs and large, out-of-state chain pharmacies.pharmacies.

VOTENO
VOTE NOON
ON SB325/HB4892
SENATE BILL 27