Ep. 35: 340B on Capitol Hill, Drugmaker Claims Data Requirements Decried, Courts Issue Key Rulings

In this episode, 340B Report Publisher and CEO Ted Slafsky, Associate Editors and Senior Writers Shannon Young and Will Newton and 340B Report’s national correspondent Luke Zarzecki break down the latest in 340B news, including a key U.S. House subcommittee’s upcoming provider hearing and a leadership shakeup that could affect the bipartisan U.S. Senate 340B working group. The team also discusses reactions to another major drugmaker's plan to require 340B in-house pharmacy data reporting, major 340B related-developments in two federal court cases and divergent state 340B program bills on the cusp of becoming law. Key Topics Covered: Capitol Hill Update Shannon and Luke discuss the latest 340B developments on Capitol Hill. Shannon previews the House Energy and Commerce (E&C) Health Subcommittee’s March 18 hearing that will look at the role providers play in rising health care costs. She notes that while the hearing will not specifically focus on the 340B program, the issue is likely to arise with the American Hospital Association—which successfully blocked the Trump administration’s 340B rebate pilot from taking effect—among those slated to testify. Shannon also highlights E&C Committee Chairman Brett Guthrie’s (R-Ky.) reintroduction of a bill, which calls for a study of how value-based purchasing arrangements affect the 340B program. Luke talks about what the change in guard at the Department of Homeland Security could mean for the bipartisan 340B Senate working group, after President Donald Trump nominated U.S. Sen. Markwayne Mullin (R-Okla.) to take over for DHS Secretary Kristi Noem. Claims Data Pushback Will discusses Novo Nordisk’s recent announcement that it plans to require covered entities to submit claims data for 340B utilization at in-house pharmacies in order to access 340B pricing. He explains why Novo’s policy, which is similar to one Eli Lilly announced earlier this year, marks a significant expansion of reporting requirements. Meanwhile, Luke breaks down what provider groups and pharmaceutical stakeholders have said about the new requirements, and the actions they have taken in response to them. Key Court Rulings Shannon, Will and Ted discuss two recent federal court rulings that have major 340B implications. Shannon shares how a Washington D.C. federal district court’s order striking down the Health Resources and Services Administration’s (HRSA) contentious 340B hospital offsite clinic registration policy is a major win for hospitals. Ted provides historical context on the case and why hospitals sued HRSA over the policy. Will discusses the federal government’s latest amicus briefs backing drugmakers in legal challenges to state 340B contract pharmacy access laws, and how the unexpected move could potentially impact ongoing litigation. State Legislative Activity Will discusses Washington’s state 340B contract pharmacy access legislation, which also includes both provider and drugmaker reporting requirements, that’s awaiting action from Gov. Bob Ferguson (D). He also dives into Virginia’s unsuccessful efforts to pass contract pharmacy access legislation after lawmakers amended an earlier contract pharmacy bill to replace it with a work study group. Ted explains why he was surprised that Virginia did not enact a 340B contract pharmacy access law despite early momentum in the state capitol and a newly elected governor who has been a longtime 340B advocate. Subscribe & Stay Updated How to Follow Us and Learn More About This Episode’s Sponsor Stay tuned for more episodes every other week! 🎧 Subscribe to Inside 340B Report on your favorite podcast platform or YouTube. Each episode is brought to you by one of our great Ultra Diamond sponsors. This week’s episode is sponsored by CompassRx, the premier AI services platform built exclusively for 340B. Harnessing pharmacy and AI expertise, CompassRx helps maximize 340B savings and operational efficiency. Visit CompassRx.com to learn more. We are very grateful to CompassRx for its sponsorship. Subscribe to 340B Report with a Special Discount We’re offering a special discount for podcast listeners. 340B Report is the indispensable source for news and intelligence on the 340B program. First-time subscribers may subscribe now using coupon code PODCAST25. Not ready to subscribe? Sign up for a 15-day free trial.