Episode 25: Bausch Health Bows Out of 340B, Federal Courts Side with States, Michigan Bill Faces Attacks

In this episode, 340B Report Publisher and CEO Ted Slafsky and Associate Editors and Senior Writers Shannon Young and Will Newton break down the latest in 340B news, including one drugmaker’s removal of medications from the 340B and Medicaid Drug Rebate programs, recent developments in key 340B drug industry lawsuits and dark money groups’ efforts to block Michigan’s 340B contract pharmacy and reporting bill.

Key Topics Covered:

Bausch Health Pulls Drugs From 340B, Medicaid Rebate Programs

Shannon discusses Bausch Health’s recent decision to remove drugs from the 340B and Medicaid rebate programs effective Oct. 1. She notes that while the terminations will affect hundreds of products associated with many of Bausch Health’s national drug codes for 340B-eligible drugs, it’s unclear whether Bausch will fully remove itself from the 340B program. Attorneys, however, have suggested that drugmakers can’t “pick and choose.” Ted discusses providers’ responses to the forthcoming terminations, including their concerns about the move’s financial implications, patient access to medications and whether other drugmakers will follow suit. 

Two More Federal Courts Side With States on Contract Pharmacy Protections

Will explains the implications of two recent major federal court rulings in favor of state 340B contract pharmacy access laws. The U.S. 5th Circuit Court of Appeals denied AbbVie’s bid to block enforcement of Mississippi’s law, reaffirming a lower court’s decision. Shortly thereafter, a federal district court in Maine denied AbbVie and Novartis’ efforts to halt Maine’s law, allowing the statute to take effect as scheduled.

Michigan’s Contract Pharmacy and Reporting Bill Comes Under Fire 

Will also discusses a recent Michigan House hearing over a contract pharmacy access bill with reporting requirements for hospitals and manufacturers. Providers strongly supported the bill, while the drug industry and two dark money groups heavily opposed it. The hearing came amid an ongoing feud between the Michigan House speaker and the leader of the state’s hospital association. It also came six months after the state Senate easily passed a similar measure.

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This week’s episode is sponsored by Plenful. Plenful is the leading AI workflow automation platform transforming how healthcare teams work. Built to empower operators and the patients they serve, Plenful enables healthcare organizations to scale operations with speed, precision, and intelligence. We are very grateful to Plenful for its sponsorship.

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