Sen. Bill Cassidy. Photo: Anna Moneymaker/Getty Images
Senate HELP Ranking Member Bill Cassidy is expanding his investigation into the 340B program to include drugmakers Amgen and Eli Lilly.
Why it matters: Cassidy appears to be laying the groundwork for his own effort into reforming the 340B program if Republicans flip the Senate and he becomes HELP chair.
State of play: Cassidy launched an investigation into the 340B program in September 2023 when he sent letters to two hospitals, Cleveland Clinic and Richmond Community Hospital, requesting information on how they use savings from the discount drug program.
- He also queried community health centers in the fall, asking whether discounts negotiated under 340B result in savings to patients.
- Then, in January, Cassidy wrote to major contract pharmacies, CVS Health and Walgreens, requesting information on how they generate revenue from 340B and whether it benefits patients.
By adding Lilly and Amgen, Cassidy is focusing on manufacturers that have imposed restrictions on the use of contract pharmacies to dispense the discounted drugs "to better understand the companies' justifications."
The other side: "We appreciate Sen. Cassidy's ongoing efforts to learn more about the inner workings of 340B from all stakeholders in the program, particularly in the growing concern of duplicate discounts in the program," Nicole Longo, deputy vice president of public affairs at PhRMA, said in a statement.
- Amgen added in a statement that the company had received Cassidy's letter and planned to respond, stating that "lack of oversight and accountability standards, combined with significant growth in contract pharmacy arrangements, has greatly transformed the program."
Between the lines: Drugmakers have increasingly been placing restrictions on 340B discounts, prompting litigation and new laws in several states.
- Recently Johnson & Johnson changed its 340B policy to make providers pay the full price of two popular drugs upfront and then submit documents for rebates — a move that the Biden administration warned violates the company's obligations under the 340B statute.
What they're saying: Cassidy previously told Axios that 340B is within HELP's jurisdiction and that he definitely wants to work on returning the program "to the original intent" if he becomes committee chair.
- Cassidy also said he was open to a Senate working group's efforts to craft legislation overhauling 340B if it is released this year, though he didn't sound optimistic it would move.
- "I think I know that it's probably running against the grain of what the House has proposed. Which means it's probably not going to make it into a final package."
- Sources have said that Cassidy wants any 340B reform effort to go through the HELP Committee.
