Exclusive: AbbVie sues to narrow drug discount patient definition

Source: msn/Axios

5h


Humira and Botox maker AbbVie is suing the Trump administration to get a clearer definition of who counts as an eligible patient in the government's discount drug program.

Why it matters: While it might seem like an arcane debate, drugmakers say an overly broad definition allows hospitals and other providers to bilk them for more discounted medications than they're due.

AbbVie's complaint is the latest twist in an ongoing fight between the drug industry and hospitals over the federal 340B program, which is designed to provide discounted drugs to safety-net providers but has been mired in litigation and finger-pointing.

Safety-net providers in the 340B program can only claim discounts on medicines dispensed to their own patients.

But the law that created 340B more than three decades ago didn't define criteria including how long the provider had to serve the patient to claim a discount.

The Health Resources and Services Administration said in 1996 that patients must have an "established relationship" with the provider in question.

Where it stands: AbbVie's lawsuit filed in U.S. District Court for the District of Columbia on Wednesday says that definition is "overly inclusive, capturing individuals who may have had only a cursory encounter with the covered entity a long time ago."

Read more: https://www.msn.com/en-us/health/other/exclusive-abbvie-sues-to-narrow-drug-discount-patient-definition/ar-AA20qVU5