Richard Davis Quoted in 340B Report Article About New Medicaid Policy that Could Change 340B Savings, Discontinuations
Quarles & Brady attorney Richard Davis, a member of the firm's Health & Life Sciences Practice Group, was quoted in a 340B Report article about the new Medicaid policy that could change 340B savings and drug discontinuations after President Biden signed the American Rescue Plan Act in 2021. Since 340B pricing rule was not affected, manufacturers can take steps to lower 340B savings.
An excerpt:
Manufacturers could change their drug pricing strategies to avoid paying Medicaid significant added rebates, which could indirectly lead to lower 340B savings, said Richard Davis, a partner at the law firm Quarles who specializes in pharmacy regulation and 340B.
“Manufacturers may adjust their prices by lowering the AMP or lowering price increases so they do not fall into the negative area where they owe state Medicaid agencies a larger rebate,” Davis said. “There’s a possibility that will lead to fewer 340B penny prices drugs and lower 340B savings as drug manufacturers respond to new market dynamics.”