The Latest Manufacturer Statuses on Denying 340B Pricing
Boehringer Ingelheim (BI) is the latest manufacturer to be added to the listing of six other manufacturers denying or limiting 340B Drug Pricing Program pricing to 340B-eligible hospital entities. In a letter dated June 30, 2021, BI stated that, effective August 1, 2021, 340B prices will only be offered on purchases shipped to 340B parent and child site locations and not to contract pharmacies.
BI has made exceptions and requirements similar to other manufacturers, including:
- Covered entities may elect a single contract pharmacy to act as their principal contract pharmacy to continue receiving 340B prices (for hospital entities that do not have an entity-owned pharmacy).
- BI has instructed hospitals to make this contract pharmacy election on the 340B ESP website.
BI has confirmed its pricing changes will not affect federally qualified grantees. 340B Health has commented on the letter.
The list of manufacturers withholding 340B pricing for contract pharmacies continues to grow:
- AstraZeneca – October 1, 2020
- Sanofi – October 1, 2020
- Eli Lilly – September 1, 2020
- Novo Nordisk – January 1, 2021
- Novartis – October 1, 2020 (continued to provide 340B discounts to contract pharmacies within 40 miles of the covered entity)
- United Therapeutics – May 13, 2021
- Boehringer Ingelheim – August 1, 2021
Backpedaling of Advisory Opinion & Issuance of Letters to the Six Manufacturers
Per our prior BKD Thoughtware® article, on May 17, 2021, the Health Resources & Services Administration (HRSA) issued individual letters from acting HRSA Administrator Diana Espinosa to all manufacturers (at the time) involved in withholding 340B pricing to covered entities’ contract pharmacy arrangements. A prior advisory opinion on the matter was rescinded and is the subject of separate litigation from three of the original manufacturers (AstraZeneca, Sanofi, and Eli Lilly).
We recommend covered entities continue taking an active role in reviewing credits and monitoring price changes. Tracking these effects will allow covered entities to understand, anticipate, and advocate on current and future potential financial loss caused by manufacturers.
For more information on the fast-moving 340B news, reach out to your BKD Trusted Advisor™ or submit the Contact Us form below.