HHS accuses Lilly of seeking ‘unilateral price increases’ during a pandemic
A drug pricing squabble between pharma and the federal government has led to a sternly worded rebuke for Eli Lilly, which is among a group of companies fighting against mandatory discounts.
As STAT’s Ed Silverman reports, Lilly has taken steps to slash the discounts it provides to the government’s 340B program, which is designed to secure bargains for hospitals and clinics that serve low-income populations. To Health and Human Services, cutting discounts amounts to “unilateral price increases,” the agency wrote in a letter to Lilly, and is, “at the very least, insensitive” in light of the ongoing Covid-19 pandemic.
The angst over 340B has ratched up in recent months, after at least five major drug companies threatened to withhold discounts and alleged that hospitals were violating the program’s rules by employing contract pharmacies to dispense those drugs.
Read more.
As STAT’s Ed Silverman reports, Lilly has taken steps to slash the discounts it provides to the government’s 340B program, which is designed to secure bargains for hospitals and clinics that serve low-income populations. To Health and Human Services, cutting discounts amounts to “unilateral price increases,” the agency wrote in a letter to Lilly, and is, “at the very least, insensitive” in light of the ongoing Covid-19 pandemic.
The angst over 340B has ratched up in recent months, after at least five major drug companies threatened to withhold discounts and alleged that hospitals were violating the program’s rules by employing contract pharmacies to dispense those drugs.
Read more.
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