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  • Lyssa Limbrecht

Boehringer Cuts Off 340B Discounts for Contract Pharmacies

As you may know, six drug manufacturers cut off 340B savings towards the end of 2020. Many 340B providers lost the savings they need to support their most vulnerable patients.


Boehringer Ingelheim (BI) has recently joined the other six manufacturers in cutting off 340B discounts. BI issued a letter to several 340B hospitals stating they would no longer ship discounted drugs to contract pharmacies starting August 1.


They also included a long list of medications that this change would impact. The list also included some of the fastest movers in many pharmacies. 340B hospitals are the only entities that are involved at this time. FQHCs and some public health clinics are exempt from this policy.


Also, other exemptions exist for hospitals without in-house pharmacies and hospitals that have ownership in particular contract pharmacies. Of course, the downstream effect of BI’s decision will cause more financial strain on covered entities and the communities they serve.


The bold move of BI is clearly unlawful. However, the company has no plans to stop enforcing its new policy. What makes matters worse, the other six drug companies received official notice from HHS that their policies violated federal law.


In fact, the six drug manufacturers would need to pay for the loss of savings which the government predicts will cost 340B providers $3.2 billion in a year.


Fortunately, 340B advocates like 340B Health are urging HHS to enforce the 340B statutes now that BI’s policy is in place. Meanwhile, other advocates are also emphasizing the crucial role the program has on the overall health of communities.


At this point, you might be wondering: How can you thrive given our current reality?


Here are five ways to avoid further financial losses and disruptions to your workflow.

  • Keep OPA database information accurate and up-to-date

  • Renew your eligibility each year

  • Avoid selling discounted drugs to ineligible patients

  • Follow your state’s Medicaid rules to prevent duplicate discounts

  • Conduct monthly self-audits or get third party experts to audit your program

Do you have any questions about recent changes? Contact Lyssa at Lyssa@optimal340B.com.






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