Drugmakers are pushing back against hospitals' latest attempt to block the 340B rebate pilot, a program that would replace upfront discounts with post-purchase rebates. On Oct. 14, AbbVie, Bristol-Myers Squibb, and Boehringer Ingelheim filed a motion to intervene in the American Hospital Association's lawsuit against HHS, arguing that the agency cannot adequately represent their interests in court.
The companies say blocking the pilot would cost them millions. Boehringer Ingelheim reports losing an average of $3 million per week due to duplicate discounts across 340B and other federal programs, while Bristol-Myers Squibb says it has already lost $40 million and AbbVie expects to lose tens of millions. PhRMA, the largest U.S. pharmaceutical trade group, filed a separate motion to intervene, claiming it would bring an industry-wide perspective HHS cannot provide.
This is the second time HHS has tried to launch the rebate pilot, the second time hospitals have sued to stop it, and the second time drugmakers have sought to intervene. In the prior lawsuit, a court denied intervention and the pilot was scrapped. To succeed this time, the drugmakers must show a plausible risk that HHS will fail to represent their interests. Hospitals argue the pilot would threaten the financial viability of safety-net providers, who rely on 340B discounts to stretch scarce resources.