(Aug. 16, 2024) – Pharmaceutical manufacturers Novartis and the Pharmaceutical Research and Manufacturers of America each filed lawsuits in the last two weeks against Kansas Attorney General Kris Kobach challenging the 340B protections passed during the 2024 legislative session. This brings 340B lawsuits to four, with Abbvie and AstraZeneca filings from early July.
The 340B protections were passed through a budget proviso during the 2024 legislative session. They require 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 continues to work 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, and stay in close communication with the AG's office. The AG's office filed a four-week extension to Sept. 6 to respond to the Abbvie and AstraZeneca filings, which was granted. In their unopposed motion for extension, the AG indicated their intention to consolidate the Abbvie, AstraZeneca and Novartis cases.
KHA will launch a 340B communications toolkit in the coming weeks and update KHA members regarding the litigation as we continue to advocate for and protect 340B in Kansas.
--Karen Braman