Swiss pharmaceutical company Novartis has filed a lawsuit against President Joe Biden's administration over a disagreement regarding the 340B Drug Discount Program. The company claims that the U.S. Health Resources and Services Administration interpreted a federal law wrongly, preventing Novartis from changing payment terms for participating hospitals. This move by Novartis could have significant repercussions on the negotiation process for the company's popular heart drug, Entresto, and its pricing under Medicare. Stay updated on market-moving news with TheFly and check out top-performing stocks on TipRanks.
Novartis Sues Biden Administration Over 340B Drug Discount Program
Swiss pharmaceutical giant Novartis has filed a lawsuit against the Biden administration over a disagreement regarding the 340B Drug Discount Program. The company claims that the U.S. Health Resources and Services Administration (HRSA) interpreted a federal law wrongly, preventing Novartis from changing payment terms for participating hospitals.
The 340B Drug Discount Program is a federal program that was established in 1992 to provide discounted prescription drugs to low-income and uninsured patients. Hospitals that participate in the program are required to pass along the discounts they receive from drug manufacturers to patients.
Novartis argues that the HRSA has misinterpreted the 340B law by requiring drug manufacturers to provide discounts to hospitals regardless of whether the drugs are actually used to treat low-income or uninsured patients. The company says that this interpretation of the law has led to "significant overpayments" to hospitals and that it has been forced to subsidize the program with its own profits.
The lawsuit could have significant repercussions on the negotiation process for Novartis's popular heart drug, Entresto. The drug is currently covered under Medicare Part D, and Novartis is seeking to change the payment terms for Entresto in order to increase its profits. The lawsuit could delay or prevent Novartis from making these changes, which could impact the price of Entresto for Medicare beneficiaries.
Background
The 340B Drug Discount Program was created as part of the Omnibus Budget Reconciliation Act of 1990. The program was originally designed to help hospitals that serve a disproportionate share of low-income and uninsured patients. The program has since been expanded to include a wider range of hospitals, including many that do not serve a disproportionate share of low-income and uninsured patients.
In 2010, the Affordable Care Act made significant changes to the 340B program. The changes included adding new eligibility requirements for hospitals and increasing the discounts that drug manufacturers are required to provide.
Top 5 FAQs
1. What is the 340B Drug Discount Program?
The 340B Drug Discount Program is a federal program that requires drug manufacturers to provide discounts to hospitals that serve a disproportionate share of low-income and uninsured patients. The program is designed to help these hospitals provide affordable prescription drugs to their patients.
2. What is Novartis's lawsuit about?
Novartis is suing the Biden administration over the HRSA's interpretation of the 340B law. Novartis argues that the HRSA is requiring drug manufacturers to provide discounts to hospitals regardless of whether the drugs are actually used to treat low-income or uninsured patients.
3. What could the lawsuit mean for Novartis?
The lawsuit could delay or prevent Novartis from making changes to the payment terms for its popular heart drug, Entresto. This could impact the price of Entresto for Medicare beneficiaries.
4. What could the lawsuit mean for the 340B program?
The lawsuit could have a significant impact on the 340B program. If Novartis is successful in its lawsuit, it could lead to changes in the way that the program is administered. This could make it more difficult for hospitals to participate in the program or could reduce the discounts that hospitals receive from drug manufacturers.
5. What is the future of the 340B program?
The future of the 340B program is uncertain. The program has been the subject of ongoing debate, with some stakeholders arguing that it is too costly and that it does not effectively target low-income and uninsured patients. However, the program remains popular with hospitals and patient advocates, and it is likely to continue to be a source of controversy in the years to come.
Arfa Javaid, a young and talented content writer from Delhi, has made a name for herself in the writing and editing industry. With her skills and expertise, she has become a published writer on various platforms such as YourQuote, Nojoto, UC News, NewsDog, and jagranjosh.com. Through her hard work and dedication, she has established herself as a top content writer and has become an inspiration for others in the field. Her success story serves as a testament to the growth and opportunities in the writing industry, making her a role model for aspiring writers.
Anant Ambani, the youngest son of India's richest man Mukesh Ambani, will be receiving a significant salary of up to ₹20 crore per year, according to a shareholder notice filed by Reliance Industries. This is in addition to perquisites and allowances, as well as a share of the company's net profits, which will be determined by a committee. Anant, who has a Bachelor's degree from Brown University, is leading the expansion of the company's energy and materials businesses and driving its goal to become a Net Carbon Zero company by 2035.
Hundreds of bike taxi riders in Karnataka have taken to the streets to protest the state government's ban on bike taxi services. The riders are facing financial struggles as they have been stripped of their source of livelihood. Despite submitting letters and staging protests, the government has not yet indicated any policy reversal. However, the Transport Minister has directed strict actions against ride-hailing apps and auto-rickshaw drivers for charging exorbitant rates.
The decision by India to ban the import of certain jute products and woven fabrics via land route has left Bangladeshi exporters reeling, as they say they are the "victims of politics". With the ban, exporting these products to India through sea route would result in a significant increase in cost, in addition to losing their upper hand in the jute export sector. This is the third such ban imposed by India on imports from Bangladesh in three months, causing further uncertainty and inconvenience for exporters.
Oracle's CTO, Larry Ellison, has set his sights on becoming the top player in cloud databases, applications, and data centers. With their strong foothold in the market and growing demand for cloud migration, Ellison believes Oracle is uniquely positioned to achieve this goal. The company's multicloud strategy, specifically designed for AI workloads, has also proved to be a popular choice among customers with a 115% quarter-over-quarter revenue growth. However, the competition in cloud applications, particularly from Salesforce, may pose a challenge for Oracle's ambitious plan.
The farmers in Kerala's Thrissur district are facing a crisis as the state government has failed to fulfill their promises, including timely payment for paddy crops and incentives. The farmers are struggling with a loss of Rs 414 crore due to a decrease in the incentive amount provided by the government. They also demand repairs for crucial infrastructure like regulators and motor pumps, as well as timely availability of quality seeds and fertilizers. The delay in paddy payments is causing loan repayments to be delayed, adding to the farmers' financial burden.
The apparel sector in India has been experiencing significant growth in recent years, but this growth has come with its costs. Forces such as foreign companies, e-commerce, and changing fashion cycles have disrupted the market, leading to an increase in affordable and disposable clothing. As a result, traditional sustainability practices, rooted in local sourcing and durable materials, are being challenged. However, the rise of thrifting, which promotes circularity and challenges the throwaway culture, offers a middle ground between traditional methods and the appeal of fast fashion.
As part of its ongoing efforts to support military veterans and first responders, FOX News Network is offering exclusive deals for its streaming service, Fox Nation. Customers can contact Fox's online representatives for more information or visit their help page FAQ for assistance. Additionally, as part of their privacy policy, Fox is committed to protecting the rights of its customers under the CCPA.
The rapid shift in the cyber insurance landscape from a niche product to a critical business requirement has been driven by the rise in evolving cyber threats, according to Evaa Saiwal, Head of Liability Insurance at Policybazaar for Business. This growth is not just limited to large corporations, but is also being seen among SMEs and emerging sectors. Cyber insurance typically covers financial losses and liabilities resulting from cyber incidents and has two key components - first-party and third-party coverage. As cyber threats become more frequent, integrating cyber insurance with broader cyber risk management strategies will be essential for maintaining business continuity and creating a secure and resilient digital business environment.
Chairman of the Adani Group, Gautam Adani, joined the annual Rath Yatra in Puri, Odisha to participate in the chariot procession of Lord Jagannath, Lord Balabhadra, and Devi Subhadra. His humble seva (service) embodies the philosophy of "Seva hi Sadhana hai" (service is worship) that guides his personal and professional life. This symbolic gesture showcases the convergence of India's spiritual legacy with corporate responsibility, highlighting leadership as a balance between grounding and vision. Along with his presence, Adani Foundation teams also provided various forms of support to the pilgrims, such as distributing free meals and drinks, aiding in sanitation drives, and supporting the beach lifeguards. This commitment to holistic seva is a lived value that embodies the Adani Group's motto of "growth with goodness."