Bristol Myers Sues HHS Over Rebate Model in Drug Discount Plan

Bristol Myers Squibb Co. is challenging a federal health agency for denying its plan to implement a rebate model for its blood thinner Eliquis to health providers that treat low-income and uninsured patients rather than through an up-front discount.

The lawsuit filed Tuesday in the US District Court for the District of Columbia challenges the US Health Resources and Services Administration for determining Bristol Myers’ rebate model to discount medicines under the 340B Drug Pricing Program would be inconsistent with federal statute.

Drugmakers under the federal 340B program are required to discount drugs for covered entities, the qualifying hospitals, clinics, ...