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HHS Can’t Ditch Drug Suits by Disavowing Letter, Attorneys Say

June 24, 2021, 8:59 AM

The Biden administration’s withdrawal of a Trump-era policy on prescription drug price cuts for low-income patients sets the stage for new tactics to incentivize cheaper medicines.

Pharmaceutical companies vow to keep fighting.

The Health and Human Services Department is standing its ground in pushing drugmakers to pass along federal discounts to contract pharmacies that work with health-care providers for at-risk patients. Drugmakers spurred a legal fight with the Trump administration in 2020 when they began limiting these discounts, which both the Biden and Trump administrations have argued are mandated under the federal 340B drug discount program.

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