Judge rules HHS' letter enforcing 340B discounts was 'arbitrary'

A U.S. district court judge recently ruled that HHS' efforts to block drugmakers from making changes to 340B discounts was "arbitrary and capricious."

On May 17, HHS sent a letter to six drugmakers — AstraZeneca, Eli Lilly, Novartis, Novo Nordisk, Sanofi and United Therapeutics — stating they were in violation of the 340B statute and must immediately begin offering their drugs at discounted prices to hospitals participating in the federal drug-pricing program. The agency said the drugmakers' policies have resulted in overcharges and are in direct violation of the 340B statute.