HHS files brief in 340B rebate model case: 4 takeaways

HHS has filed a legal brief urging a federal judge to dismiss lawsuits brought by pharmaceutical companies challenging the agency’s stance on 340B rebate models.

Here are four takeaways:

1. In the brief, HHS argued that the rebate-based pricing models proposed by drugmakers violate the 340B statute which requires upfront reimbursements. The agency stated that the models undermine the program’s purpose and create administrative burdens for hospitals that rely on 340B discounts.
2. Eli Lilly, Novartis and Bristol Myers Squibb have each proposed rebate-based models that require hospitals to pay full price upfront and...

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