Merck Withdraws from 340B Drug Discount Program

Merck is the latest big drugmaker to announce that it will stop sales of 340B-discounted products to contract pharmacies, ignoring warnings from HHS that such moves made by other drugmakers are in violation of federal law.

Merck sent letters to 340B hospitals and clinics last week saying it will end the discounts as of Sept. 1 if claims data are not provided from contract pharmacies, unless the hospital or clinic lacks its own in-house pharmacy.

This comes about a year after Merck asked 340B entities to join a Merck program to provide claims data so the company could prevent duplicative discounts for 340B and Medicaid. Merck said in its letter that participation in that program was minimal.