Pharmaceutical company AbbVie has taken the federal government to court, demanding updated rules for a drug discount program that serves low-income patients.
The 340B program mandates that pharmaceutical companies provide medications at steep discounts to qualifying healthcare facilities that treat disadvantaged communities.
AbbVie contends the current rules contain gaps that permit hospitals and medical centers to obtain discounted drugs for patients who have little to no connection with their facilities, or even request multiple discounts for identical prescriptions.
According to the pharmaceutical giant, these regulatory weaknesses have converted a program designed as a “safety-net” into a discretionary revenue stream for hospitals.
AbbVie is pushing for stricter requirements where 340B discounts would only be available when healthcare providers are actively treating a patient’s particular medical condition and have conducted a comprehensive examination within the past year.
This legal challenge represents the most recent development in an ongoing dispute between pharmaceutical manufacturers and healthcare institutions over the multi-billion dollar 340B initiative.
Previous lawsuits, which have seen varying degrees of success, have contended that state regulations conflict with federal 340B legislation. For years, drug companies have maintained that the extensive use of contract pharmacies within the 340B framework creates opacity and increases the likelihood of inappropriate discounting.
AbbVie’s case, filed in the U.S. District Court for the District of Columbia, differs from earlier litigation by directly challenging federal law and requesting a patient definition that could significantly limit 340B program access.
