The Obama administration finalized a rule that would fine drug makers for overcharging hospitals, clinics, and other providers for medicines that are purchased under the federal government’s 340B drug discount program.

Under the rule, which was issued on Wednesday by the US Human Resources and Service Administration, drug makers could be fined up to $5,000 for each instance in which they “knowingly and intentionally” overcharge for their medicines. The companies must also reimburse providers for medicines that were purchased.

Unlock this article by subscribing to STAT Plus and enjoy your first 30 days free!

GET STARTED

What is it?

STAT Plus is a premium subscription that delivers daily market-moving biopharma coverage and in-depth science reporting from a team with decades of industry experience.

What's included?

  • Authoritative biopharma coverage and analysis, interviews with industry pioneers, policy analysis, and first looks at cutting edge laboratories and early stage research
  • Subscriber-only networking events and panel discussions across the country
  • Monthly subscriber-only live chats with our reporters and experts in the field
  • Discounted tickets to industry events and early-bird access to industry reports

Leave a Comment

Please enter your name.
Please enter a comment.

Sign up for our Daily Recap newsletter

A roundup of STAT’s top stories of the day in science and medicine

Privacy Policy