What Makes 340B Penalty Delays Tricky?

Trump Administration Further Delays 340B Penalty Rule

Manatt’s Helen Pfister, a partner with Manatt Health, was quoted by HFMA in an article discussing the current administration’s delay of the 340B penalty rule. 
The 340B program requires pharmaceutical manufacturers to offer outpatient drug discounts to safety net hospitals and other providers. According to the publication, the Department of Health & Human Services announced on Aug. 17 that it would delay implementation of a final rule, which would punish prescription drug producers who intentionally overcharge 340B hospitals and other providers. The rule would also set a cap for 340B drug prices.
“There’s been criticism of this program from both sides for years and there is room for improvement,” said Pfister. “The tricky thing for the agency is striking the right balance and allowing the program to remain in effect, while addressing some of the concerns posed over the years.”



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