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HHS Releases Advisory Opinion Clarifying that 340B Discounts Apply to Contract Pharmacies

Jan 06, 2021 | Julia Zigman

A recent HHS statement clarifies that drug manufacturers are required to deliver discounts under the 340B Drug Pricing Program (340B Program) on covered outpatient drugs when contract pharmacies are acting as agents of 340B covered entities.

The advisory opinion from the HHS Office of the General Counsel comes in response to reports of some drug manufacturers refusing to provide 340B discounts to covered entities when covered entities order the drugs themselves but then have the drug physically delivered to patients through “contract pharmacies.” Through the new advisory opinion, HHS has clarified that drug manufacturers must provide 340B discounts when a contract pharmacy is acting as an agent of a covered entity, providing services on behalf of the covered entity.

The opinion has implications for 340B covered entities who deliver medicines to clients via contract pharmacies, such as sexual health clinics covered by 340B.

For more information, please read the announcement and full advisory opinion here.


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About Julia Zigman

Pronouns: she/her

Julia Zigman is a Program Analyst on the NACCHO HIV, STI, & Viral Hepatitis team. Julia focuses primarily on NACCHO’s Ending the HIV Epidemic portfolio and is a lead staff member for the HIV, STI, and Viral Hepatitis Workgroup. Learn more about these programs here.

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