Press Release  AG Healey Joins Bipartisan, Nationwide Coalition Defending Discount Prescription Program Serving Low-Income Patients

BOSTON — Attorney General Maura Healey today joined a bipartisan coalition of attorneys general in filing two amicus briefs in support of Biden administration efforts to ensure that community health centers, clinics, and institutions serving low-income and underserved patient populations have access to discounted prescription drugs.

The briefs defend the actions of the U.S. Department of Health and Human Services (HHS) in cases filed by Sanofi SA, Novartis Pharmaceutics, United Therapeutics Corp and NovoNordisk. The pharmaceutical giants have refused to comply with or unilaterally adopted unlawful restrictions on the 340B Program, which requires discounted drug pricing for community health centers, clinics, and other safety-net providers. The 340B Drug Pricing Program was adopted by Congress in 1992 and has strong bipartisan support. 

The drug companies challenged violation orders issued by HHS. The bipartisan, multistate coalition argues in their amicus briefs that HHS’ actions were lawful and necessary.

“These drug manufacturers have unlawfully obstructed a program enacted by Congress that ensures vulnerable populations can access affordable prescription drugs,” said AG Healey. “We are speaking up in support of HHS and its efforts to hold these companies accountable and ensure affordable drug prices for patients in need.”

According to the brief, “For nearly two years…drug manufacturers participating in the 340B Program of the Public Health Service Act, 42 U.S.C. § 256b (“340B Program”), have flouted their statutory obligation to offer safety-net providers 340B-discounted prices on critical prescription drugs. These drug manufacturers have either limited 340B covered entities to using a single retail community pharmacy (contract pharmacy) or conditioned the use of multiple contract pharmacies on intrusive audits of healthcare providers’ confidential, proprietary claims data. Drug manufacturers allege that imposing conditions that restrict the use of contract pharmacies is appropriate because the term “pharmacy” is not in the text of the 340B statute and that such conditions are necessary to prevent drug diversion and duplicate reimbursement claims. But permitting manufacturers to unilaterally change the 340B Program is in direct contravention of the statute and policies long pursued by Congress and advanced by the States.”

The bipartisan coalition of attorneys general previously urged HHS to hold drug makers accountable for their unlawful actions imperiling access to affordable prescriptions for low-income patients.

The amicus briefs were led by Connecticut Attorney General Tong and signed by Massachusetts Attorney General Maura Healey and the attorneys general of Arkansas, Connecticut, Colorado, District of Columbia, Delaware, Illinois, Hawaii, Kansas, Louisiana, Maine, Maryland, Michigan, Mississippi, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, Rhode Island, Utah and Vermont.

###