Attorney General Tim Griffin issued the following statement announcing a lawsuit his office filed to hold drug manufacturers accountable for violating Act 1103 of 2021 and engaging in unconscionable business practices that undermined access to 340B drug discounts in Arkansas:
“Today I am announcing a lawsuit I have filed against 22 defendants: 13 drug manufacturers, their related entities, and one data management firm. Drug manufacturers embarked on a coordinated campaign to limit patient access while blatantly ignoring Arkansas law. I won’t stand for it and am bringing this lawsuit today to ensure Arkansas patients are always put first.
“For nearly 35 years, drug manufacturers that participate in Medicare and Medicaid have been required to sell prescription drugs at substantially discounted prices to certain healthcare providers, known as covered entities, under the federal 340B Drug Pricing Program. Many Arkansas hospitals and community clinics rely on the savings from 340B to stretch limited healthcare dollars. Those savings help providers keep clinics open, serve uninsured patients, offer specialty services, and expand care in rural communities.
“The 340B program was established in 1992, and as pharmaceutical companies increased drug prices and the 340B program expanded, the discounts required under the 340B program grew larger. Rather than honoring those discounts, many manufacturers adopted a series of restrictions that made it increasingly difficult for healthcare providers to obtain discounted drugs.
“In response, Arkansas enacted Act 1103 in 2021, the first law in the nation designed to protect healthcare providers’ ability to access 340B discounts through local pharmacies. Drug manufacturers sued to stop Act 1103, but they lost. Instead of simply following the law, manufacturers developed new restrictions that continued to interfere with providers’ access to discounted drugs and the savings those discounts generate for Arkansas patients and communities. Every dollar lost through these restrictions is a dollar that can’t be used for patient care.
“Since Act 1103’s passage, drug manufacturers have failed to comply with its explicit terms for contract pharmacies and instead, actively undermined those protections. Through a series of burdensome and unlawful restrictions, they reduced healthcare providers’ access to 340B savings and the resources available to serve Arkansas patients. This lawsuit seeks to stop these unconscionable practices that are harming healthcare providers, patients, and communities across Arkansas.
“Many Arkansans depend on one or more prescription drugs to maintain their health and quality of life, and they can’t afford the high prices that are passed down when manufacturing companies refuse to follow the law. I am proud to stand up for Arkansas consumers and hold these companies accountable.”
READ ALSO: Millions Discover Conway as Streamer University Puts It In Global Spotlight
