Sen. Cassidy: Demand Transparency from Big Pharma Too

Sen. Bill Cassidy (R-LA) recently sent a letter to CVS and Walgreens requesting information on the specifics of their role in 340B Drug Discount Program.  Both companies offer services to help qualified hospitals and clinics receive the benefits of the program by tracking and processing outpatient scripts covered by the program.

Cassidy wants to know specifics, like how the companies generate revenue from 340B, how that money is accounted for in federal filings and he seeks unredacted copies of contract pharmacy agreements. These are worthwhile questions, since critics charge that the powerful pharmacy benefit manager divisions of CVS and Walgreens soak up 340B savings meant to help safety-net hospitals and clinics better serve their patients.

It’s important to note that Sen. Cassidy has requested financial information from companies that are not profiting from taxpayer funds,  because the 340B Program is not funded by taxpayers.

However, pharmaceutical manufacturers that voluntarily choose to participate in the 340B Program are permitted to sell tens of billions of dollars of drugs to the largest taxpayer-funded health insurance programs, Medicare and Medicaid, generating massive profits for the drug makers.

If Sen. Cassidy is serious about transparency, he should send a letter to the seven drug companies that the Department of Health and Human Services’ Office of Inspector General has referred for assessment of civil monetary penalties for violating the 340B Drug Discount Program: Novartis, Novo Nodisk, Sanofi, United Therapeutics, Boehringer Ingelheim, Eli Lilly and Astra Zeneca.

In his letter, Senator Cassidy should not be afraid to request the following information:

1. Total annual profits each drug company generates by selling drugs through the 340B program.

2. Total annual profits from selling medicines to the Medicare and Medicaid programs.

3. Total annual spending on TV advertising.

4. Total annual amount spent on patient assistance programs and coupons and what is the return on investment in terms of drugs sold?

5. Provide “Good faith” inquiries and results sent to the Health Resources and Services Administration.

We hope Sen. Cassidy has the courage to ask these questions of the big drug companies. If he doesn’t, it will be obvious to everyone that he’s not serious about transparency in the 340B Program. We remain hopeful that he is.