HHS Secretary Discusses 340B, Drug Pricing Reforms

The 340B drug savings program must be reformed, Health and Human Services Secretary Alex Azar said today at a 340B conference in Washington, D.C. Azar spoke about the need for 鈥済reater transparency surrounding how these [340B] discounts are being used鈥 and 鈥渞eforms to reduce the gap between discounted prices and the reimbursement provided.鈥 In addition, Azar said change is coming for the larger issue of prescription drug pricing, 鈥渨hether it鈥檚 painful or not for pharmaceutical companies.鈥 He spoke about the administration鈥檚 , which was released in May, on ways to lower drug prices and reduce out-of-pocket costs for consumers. 鈥淪omething must be done about these skyrocketing list prices, and yet the system that has been built makes that nearly impossible,鈥 he said. 鈥淓veryone in the system, from drug companies to pharmacy benefit managers to drug wholesalers makes their money as a share of list prices.鈥