In this episode, 340B Report Publisher and CEO Ted Slafsky, Associate Editors and Senior Writers Shannon Young and Will Newton and National Correspondent Luke Zarzecki break down the latest in 340B news, including recent congressional hearings and letters that focused on the 340B program, a major drug industry trade group's new seven-figure ad campaign targeting 340B hospitals and the Louisiana attorney general's moves to enforce the state's 340B contract pharmacy access law.
Key Topics Covered:
Congress Weighs In
Shannon breaks down two recent congressional hearings where the 340B program drew scrutiny from witnesses and lawmakers—a May 5 U.S. Senate Health, Education, Labor and Pensions (HELP) Committee field hearing in Louisiana and an April 28 U.S. House Ways and Means Committee hearing. She notes that U.S. Sen. Bill Cassidy (R-La.), who chairs the HELP Committee and faces a tough upcoming GOP primary challenge, did not say much about the 340B program at his panel's field hearing despite his investigation into the program and previous vocal calls for reform. However a witness, who leads a private cancer clinic, focused her attention on 340B and called for major changes. A Louisiana independent pharmacist also weighed in. Meanwhile, Will discusses competing congressional letters that supported and opposed federal efforts to implement a 340B rebate model. And Luke dives into an expected bipartisan bill that will exempt additional covered entities from rebates. He notes that while the bill has not been introduced yet, 340B Report got an exclusive look at its contents.
PhRMA Launches New Campaign
Shannon discusses the Pharmaceutical Research and Manufacturers of America's (PhRMA) newest seven-figure ad blitz that takes aim at 340B hospitals. She notes that the campaign, which follows a similar 2025 seven-figure effort from PhRMA, argues that "340B medicine markups are a goldmine for big hospital systems" and features a video ad depicting fictional hospital leaders at a "340B executive spa." Shannon also discusses how key hospital trade groups, including the American Hospital Association, responded to PhRMA's ad campaign.
Key Legal Developments
Will discusses the Louisiana attorney general's (AG) plans to take enforcement action against manufacturers for alleged violations of the state's 340B contract pharmacy access law. He notes that the move comes roughly three months after a three-judge panel for a New Orleans federal appeals court unanimously upheld the state law against multiple drugmaker legal challenges. And it came as the AG said she's received numerous complaints about alleged violations of the law. Will explains that Louisiana was the second state in the nation to enact a contract pharmacy law, following Arkansas, which similarly took enforcement action following a legal victory.
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