Senators Urge HHS to Implement 340B Penalties

November 2, 2017

Over a dozen Democratic senators sent a letter to the acting HHS secretary, urging him to implement the 340B program’s civil monetary penalties against drug manufacturers for overcharging hospitals.

The Obama administration first published the rule in January, but it has since been delayed four times, most recently to July 1, 2018. The senators said the delays contradict President Trump’s repeated statements to bring down the costs of prescription drugs.

The rule includes civil penalties of up to $5,000 for each time a 340B provider paid a manufacturer more than the established ceiling price for a single drug product, regardless of the number of units purchased.

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