HHS tar­gets or­phan drug dis­counts

Modern Healthcare - - NEWS - By Jaimy Lee

HHS is mov­ing for­ward with its plan to al­low cer­tain hos­pi­tals to re­ceive dis­counts on or­phan drugs when they are used for non-or­phan con­di­tions, de­spite a re­cent federal court rul­ing that said the agency did not have the author­ity to do so.

The agency last week as­serted that the U.S. District Court for the District of Columbia’s rul­ing in May did not in­val­i­date its 2013 or­phan-drug ex­clu­sion rule in­ter­pret­ing a pro­vi­sion of the health­care re­form law.

That rule ap­plies to four types of hos­pi­tals that par­tic­i­pate in the 340B federal drug-dis­count pro­gram, which gives dis­counts on cov­ered out­pa­tient drugs to health­care providers that serve large num­bers of low-in­come and unin­sured pa­tients.

HHS’ Health Re­sources and Ser­vices Ad­min­is­tra­tion said par­tic­i­pat­ing providers and man­u­fac­tur­ers “should at­tempt to work out any is­sues in good faith” prior to the start of the new quar­ter July 1.

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