Drugmakers Move to Intervene in Hospitals' 340B Rebate Lawsuit
AbbVie, Bristol Myers Squibb, Boehringer Ingelheim and PhRMA filed motions Oct. 14-15 to intervene in American Hospital Association v. Kennedy, the hospital industry's lawsuit seeking to block HRSA's revised 340B Rebate Model Pilot Program before its Jan. 1 start. The manufacturers argue the government's defense of the program may be inadequate since they, not HRSA, bear the financial risk of duplicate discounts and penalties, citing losses ranging from $3 million weekly to $40 million already incurred. PhRMA cited an estimate that members could pay $5.2 billion in duplicate 340B and Medicare negotiated-price discounts in 2027. The case follows a 1st Circuit order vacating a prior denial of intervention, giving the court another chance to rule on the manufacturers' standing to join the suit.