CHA News Article

Hospital Groups’ Lawsuit Seeks 340B Program Price Transparency

In an effort to promote drug pricing transparency, hospital groups yesterday sued the Department of Health and Human Services (HHS) in an attempt to force the agency to make effective a final rule that requires drug companies to disclose the ceiling price for drugs acquired under the 340B Drug Pricing Program. The plaintiffs — the American Hospital Association, Association of American Medical Colleges, America’s Essential Hospitals, 340B Health and three hospital systems — allege that, in delaying the effective date of the final rule five times, HHS violated the Administrative Procedure Act.

In 2010, Congress required the HHS Secretary to develop a final rule that addressed ceiling prices, among other topics. The final rule includes provisions that address the method of calculating ceiling prices and allow the federal government to penalize drug companies that intentionally overcharge 340B providers. More information about the lawsuit is available on the American Hospital Association website. CHA will continue to monitor the situation and will share developments with members as it unfolds.