Pharmaceutical company Bausch Health said it will impose restrictions on 340B drug pricing discount programs for safety-net providers, according to 340B Health's website.
Currently, Bausch Health is the 18th company to restrict drug pricing discounts, which 340B Health said is unlawful. The 18 companies include GSK and Johnson & Johnson. The 340B drug pricing program requires drugmakers participating in Medicaid to sell outpatient drugs at a discount to qualifying providers serving large numbers of uninsured and low-income patients.
Nine of the companies have been notified that these imposed restrictions are unlawful and are encouraged to resume law-abiding 340B pricing protocols.
Seven of the companies face potential fines from HHS' Office of Inspector General.
"The actions that Bausch Health announced today are contrary to the law and must stop," 340B Health CEO and President Maureen Testoni said in a July 1 statement on the organization's website. "By ignoring their legal agreements to offer discounted pricing on outpatient drugs sold to 340B hospitals, health centers, and clinics, companies such as Bausch Health are threatening crucial health care for patients with low incomes and those living in rural communities who rely on these providers for care."
Bausch Health's restrictions are set to begin Aug. 1.