Statement on 340B Rebate Model Litigation

November 26, 2024

Today, Bristol Myers Squibb filed a lawsuit protecting our ability to implement a rebate model for the 340B program with the goal of creating transparency and restoring integrity to the program.   

In recent years, the lack of transparency in the 340B program has driven widespread abuse. Many covered entities and their business partners, such as large retail pharmacy chains, have profited from the program without lowering costs to patients. We anticipate the implementation of the Inflation Reduction Act’s “Maximum Fair Price” (MFP) will only exacerbate abuse by introducing an additional opportunity for unlawful duplication of the 340B price and the MFP. 

BMS fundamentally supports the original intent of the 340B program, which is to serve uninsured, low-income patients. The rebate model we proposed will ensure 340B program compliance, enable more transparent data sharing and reduce duplicate discounting. BMS will provide expedited payments to covered entities that choose to lower out-of-pocket costs for uninsured and vulnerable patients. We will continue to advocate for an environment that supports patient access to our medicines while ensuring 340B program integrity.