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AHA urges HHS to block Novo Nordisk’s 340B data demand

The American Hospital Association is urging HHS to prevent Novo Nordisk from requiring 340B entities to submit all claims-level data to the Denmark-based drugmaker. 

Enacted in 1992, the federal 340B program obligates drugmakers to provide discounts on outpatient medications to safety-net healthcare providers, including disproportionate-share hospitals and children’s hospitals. 

Drug manufacturers and 340B entities have engaged in a tug-of-war for years over contract pharmacies, a potential rebate payment structure and other aspects of the program. On March 2, Novo Nordisk floated a planned change to covered entities.

Novo Nordisk told 340B covered entities they will be required to submit claims-level data for all 340B dispenses, effective April 1, according to an AHA-published notice from the pharmaceutical company. The data will aid Novo Nordisk in identifying duplicate claims at the 340B price and “maximum fair price,” the letter said. 

The AHA told HHS’ Health Resources and Services Administration the new policy — which another drugmaker, Eli Lilly, has already enacted — is illegal and imposes “onerous costs” on 340B entities, according to a March 3 letter. 

A Novo Nordisk spokesperson told Becker’s the new policy aims to “ensure transparency within the program.”

“This updated policy does not change which entities qualify for 340B pricing, nor does it limit how much product they can purchase at 340B prices,” the spokesperson said. “It does, however, require that covered entities provide to Novo Nordisk the same types of claims level data that they routinely compile and submit to third-party [administrators].”

The post AHA urges HHS to block Novo Nordisk’s 340B data demand appeared first on Becker's Hospital Review | Healthcare News & Analysis.

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