(July 12, 2024) – Pharmaceutical companies Abbvie and AstraZeneca filed separate lawsuits on July 1 against Kansas Attorney General Kris Kobach over the 340B protections passed during the 2024 legislative session.
During the legislative session, the Kansas Legislature approved a budget proviso requiring drug manufacturers to honor 340B pricing at contract pharmacies under the Consumer Protection Act of Kansas. The lawsuits seek to prohibit Attorney General Kobach from enforcing violations of the Kansas Consumer Protection Act by drug manufacturers enrolled in the 340B federal drug discount program.
The 340B program requires drug manufacturers to sell outpatient drugs at a discount to safety-net providers, including certain designated hospitals serving high numbers of low-income Medicare, Medicaid and Supplemental Security Insurance patients. Congress created the program in 1992 to extend to safety-net providers the same kind of relief from high drug costs that Congress provided to the Medicaid program with the Medicaid rebate law, allowing these providers to "stretch scarce federal resources as far as possible, reaching more eligible patients and providing more comprehensive services."
The Kansas Hospital Association is in close communication with the AG's office and works closely with the American Hospital Association, legal counsel and partners such as the Community Care Network of Kansas, Kansas Council of Health System Pharmacists and Kansas Pharmacists Association to defend 340B protections in Kansas.
Many members responded to a recent survey on the impact of pharmaceutical manufacturers' 340B contract pharmacy limitations—thank you for your quick response! KHA may continue to seek information from member hospitals as necessary to demonstrate the importance of the 340B program. Thank you for your ongoing support as we fight to protect 340B in Kansas.
--Chad Austin