Drugmakers, HHS Square Off in Fight Over Low-Income Discounts

Steps drugmakers take to rein in a federal program that “has gone off the rails” must be held lawful, they said Monday during oral arguments on whether they can impose conditions on the discounts they give to certain health-care providers under the 340B program.

D.C. Circuit judges questioned whether manufacturer-imposed limits on pharmacies that these providers designate to distribute medications would frustrate the law’s primary directive—that drugmakers sell their products to covered entities at discounted prices.

Congress created the 340B program to help health-care providers ensure that low-income patients can afford their medications. It requires drugmakers to offer their products ...