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Yahoo
3 days ago
- Business
- Yahoo
AstraZeneca sues Utah attorney general over new drug pricing law
AstraZeneca, a major pharmaceutical company, has sued Utah's Attorney General Derek Brown over a recently passed state law allowing for lower pricing in pharmacies. The lawsuit concerns how SB69, passed during the 2025 state legislative session, deals with Section 340B of the federal Public Health Service Act. The suit was filed in May in the U.S. District Court of the District of Utah. The lawsuit argues that SB69 violates federal law by expanding the 340B drug discount program to unlimited pharmacies. The 340B drug discount program is designed to provide pricing benefits to specific eligible health care entities. It requires pharmaceutical manufacturers to offer products at steeply discounted rates for a specific list of entities. 'Because such price controls can disincentivize innovation and destabilize markets, Congress carefully crafted Section 340B and limited participation in the program to fifteen — and only fifteen — types of covered entities," per the lawsuit. It also points out that for-profit pharmacy chains, such as CVS and Walgreens, were not included in the list of covered entities. AstraZeneca's suit seeks for an order declaring that SB69 violates federal law and is unconstitutional. It also seeks to stop Brown and Utah Insurance Commissioner Jon Pike from enforcing SB69 against AstraZeneca in any manner. The Utah Attorney General's Office said Friday it had no comment on the lawsuit. SB69, which was sponsored by Sen. Evan Vickers, R-Cedar City, defines terms related to the 340B drug discount program and prohibits pharmaceutical manufacturers from setting certain restrictions. Under the law, manufacturers cannot prohibit or restrict pharmacies from contracting with 340B entities. They also cannot deny these 340B entities access to specific drugs. 'Apparently dissatisfied with the scope of federal law, the State of Utah has enacted a statute seeking to achieve under state law precisely the same result that federal courts have resoundingly rejected,' per the suit. 'The state law requires pharmaceutical manufacturers to offer 340B-discounted pricing for sales at an unlimited number of contract pharmacies.' The suit says that SB69 extends Section 340B price caps beyond the scope of the federal program, requiring manufacturers to make discounted drugs available for sale at any and all pharmacies 'authorized by a 340B entity to receive the drug.' It alleges that the law extends the discounts to new categories of transactions that are not covered by the program, thus conflicting with federal law requirements. The suit argues that the law conflicts with federal law, specifically court rulings that 'make clear that the federal 340B statute does not obligate manufacturers to deliver discounted drugs to unlimited contract pharmacies." According to the suit, SB69 also violates federal patent law, which 'prohibits states from regulating the price of patented goods.' 'It requires manufacturers like AstraZeneca to offer steeply discounted prices for the sale of their patented drugs, thereby extending federal price caps to an additional category of patented drug sales (contract pharmacy sales) that federal courts have held fall outside of the 340B program. It also argues that SB69 violates the Contracts Clause of the U.S. Constitution and the Constitution's takings clause.
Yahoo
3 days ago
- Business
- Yahoo
Pharmaceutical company AstraZeneca sues to stop Utah law expanding access to discounted drugs
Sen. Evan Vickers, R-Cedar City, is pictured on the first day of the legislative session at the Capitol in Salt Lake City on Tuesday, Jan. 16, 2024. (Photo by Spenser Heaps for Utah News Dispatch) Pharmaceutical giant AstraZeneca is suing Utah's attorney general and insurance commissioner over a law passed during the legislative session aimed at stopping drug manufacturers from limiting where hospitals and clinics can buy discounted medication. Filed in May in federal court in the District of Utah, the company accuses the law of being unconstitutional and in conflict with prior court rulings. Sponsored by Sen. Evan Vickers, R-Cedar City, SB69 deals with the federal 340B program, a decadesold provision in the Public Health Service Act that aims to supply hospitals and health clinics with drugs at a discounted price. The program requires drug manufacturers to provide discounts on certain outpatient drugs for entities covered under the program, like hospitals, clinics, or Native American tribes. According to the American Hospital Association, hospitals can pass savings from the 340B program along to patients by offering health care to uninsured patients, providing free vaccinations, or expanding mental and community health programs. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX But Vickers, who owns and operates a pharmacy in Cedar City, said the program is not popular among drug manufacturers, who have tried to limit where the entities covered under 340B can obtain the discounted drugs. Speaking on the Senate floor earlier this year, Vickers said manufacturers have been enforcing a 'one pharmacy rule,' where certain drugs can only be obtained from certain pharmacies. 'From their perspective it's expanded more than they would like, so they've tried to limit the access of drugs,' Vickers said. 'Essentially, you could have a patient being able to get a product at a discounted price in one town but not the other.' SB69, which passed in March during the final week of the legislative session, tries to prevent this. The bill is relatively simple at just 53 lines, and states that drug manufacturers cannot restrict pharmacies from contracting with entities covered under the 340B program. It also restricts manufacturers from preventing the delivery of a 340B drug to any location authorized to receive it. 'I don't stand here professing that the manufacturers are happy with this, I will tell you they're not,' said Vickers earlier this year, telling his Senate colleagues that states that have passed similar legislation have been targeted by lawsuits. 'But what we're looking at is providing access to medication at a discounted price.' Vickers was right. AstraZeneca, the global pharmaceutical company that generated more than $54 billion in revenue in 2024, is now suing Utah Attorney General Derek Brown and Utah Insurance Commissioner Jon Pike to stop the enforcement of SB69. The Utah Attorney General's Office did not provide comment on the active litigation. In the complaint, attorneys for AstraZeneca point to prior court rulings that supersede Utah's law. 'Apparently dissatisfied with the scope of federal law, the State of Utah has enacted a statute seeking to achieve under state law precisely the same result that federal courts have resoundingly rejected,' the complaint reads, accusing SB69 of requiring 'discounted pricing for sales at an unlimited number of contract pharmacies.' According to AstraZeneca, the requirement in SB69 goes beyond the original intent of the 340B program, putting state law at odds with federal law and violating the Supremacy Clause of the U.S. Constitution. Plus, the lawsuit alleges, SB69 violates the Contracts Clause of the Constitution because it interferes with agreements between drug manufacturers and the U.S. Department of Health and Human Services, as well as the Constitution's Takings Clause, which protects private property from being seized for public use, since SB69 requires AstraZeneca to transfer its private property (prescription drugs) to entities covered under 340B. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
21-05-2025
- Health
- Yahoo
Dixon council inks agreement with OSF Saint Katharine that allows enrollment in drug discount program
May 20—DIXON — The Dixon City Council on Monday, May 19, approved an agreement with OSF HealthCare marking its commitment to providing care to low-income and uninsured patients. The memorandum of understanding is basically a formality because OSF Saint Katharine Medical Center, a non-profit and a Catholic health system, as part of its policy already provides care to all individuals regardless of their ability to pay. It's really intended to fulfill a prerequisite for the hospital to participate in a federal assistance program that provides drug discounts to hospitals and clinics that qualify, Dixon Mayor Glen Hughes said. The 340B Drug Discount Program, authorized under Section 340B of the Public Health Service Act, provides significant discounts on outpatient drugs for certain safety-net health care providers, primarily those that serve a higher number of low-income and uninsured patients, according to the Health Resources and Services Administration website. In Lee County, the median household income is about $68,459 a year compared to about $80,306 a year across Illinois. About 11.7% of people in Lee County are living in poverty, which is nearly equal to the estimated 11.6% statewide, according to the U.S. Census 2023 American Community Survey 5-Year Estimates data. That data also estimates that 3.6% of people in Lee County do not have health care coverage, which is less than the estimated 6.2% for all of Illinois. The agreement "does not create any substantive legal requirements on the part of the city," City Attorney Rob LeSage told the council, adding that the agreement doesn't impose any cost or liability requirements on the city. "We're just making that statement that we have an understanding with them and that we're supporting the fact that they are providing services to an above-average lower-income or Medicaid clientele," Hughes said. OSF Saint Katharine is "effectively doing these things already, and by memorializing this in this standard form of wave the magic wand, and now they are eligible to receive pharmaceuticals at a lower cost," LeSage said. "This agreement marks a significant milestone in our continuing efforts to improve healthcare access and affordability for the communities we serve," OSF Saint Katharine President Jackie Kernan said. "By participating in this program, we can extend our resources, making sure that our patients receive the medications they need at a lower cost. We thank the city of Dixon for their partnership and shared vision in making this initiative possible."
Yahoo
12-04-2025
- Health
- Yahoo
'Worried about cuts': Health care providers respond to proposed HHS downsizing
Editor's note: Federal Fallout is a Tribune-Democrat news series addressing the potential local impact of funding cuts. JOHNSTOWN, Pa. – Hyndman Area Health Centers have five federally funded locations in Cambria and Bedford counties that provide 'vitally important' care to the underinsured and uninsured populations of those areas. The clinics offer medical and dental services to the region, which chief executive and medical officer Brian Stratta described as needed care. Federal Fallout logo However, with proposed cuts to the U.S. Department of Health and Human Services, Stratta said he's concerned about the future of the centers and for thousands served in the two counties. In 2024, the five locations saw 8,040 patients. 'It's hard to plan a future when there's unknowns,' Stratta said. 'The uncertainty of, 'Will that funding be there to support the infrastructure one year down the road, five years down the road?' ' HHS announced at the end of March a restructuring plan that includes reducing the workforce by 10,000 full-time jobs. When combined with an early retirement incentive and other measures, that could mean a decrease from 82,000 employees to 62,000. The plan will consolidate 28 divisions to 15 and cut regional offices from 10 to five. Congress has also discussed decreasing the federal deficit through potential cuts to Medicaid – a health plan that allows millions around the country to receive medical care from family clinics such as Hyndman. The Hyndman offices, one in Richland Township and another in downtown Johnstown, are federally qualified health centers, which means the clinics qualify for federal funding under Section 330 of the Public Health Service Act. Because of that, the providers can receive enhanced reimbursements from Medicare and Medicaid as well as other benefits, offer a sliding fee scale, and provide comprehensive services, including hospital and specialty care. 'We need to provide care to those people who don't have any,' Stratta said. He said the centers fill a need that private practices can't afford to provide due to uninsured or underinsured patient status. For example, the Hyndman mobile unit provided a mobile dental clinic in the Oakhurst Homes community room Tuesday. Hyndman receives up to $1.6 million annually from the Section 330 funding stream and H80 grant, Stratta said, but it's unclear if all of that will be received this year. Some of the dollars have already been drawn down, Stratta said, but in talking to other FQHC leaders, there's serious concern about not knowing what will happen next. 'We're still moving forward,' Stratta said, 'just at a slower pace than we were.' 'Life or death' Jeannine McMillan, executive director of the Center for Population Health in Johnstown, said the programs supported by Medicaid and Medicare could mean 'life or death for many in the community.' She and her team have been sounding the alarm regarding proposed federal cuts and government downsizing to the regional business community, elected officials and health care communities. 'I don't think that any of the populations of folks we've spoken to realize how dire of a situation this is for our agencies,' McMillan said. Although the Center for Population Health doesn't receive any federal operations dollars – it's primarily grant- and donor-funded – McMillan said many agencies in the area do. Area health and human services providers do everything they can to meet the 'great need in the community,' and now they're facing nearly daily changes and uncertainties, McMillan said. The Pennsylvania Department of Human Services website shows that 35,186 residents in Cambria County are enrolled in Medicaid and 15,487 in Somerset County. Additionally, nearly 3,000 people in Cambria County qualify for more than $9 million of assistance under the Medicaid expansion for behavioral health services created by the Affordable Care Act, and 1,289 people do in Somerset County for a total of $3.7 million. McMillan said Cambria's Medicaid and Medicare enrollment represents more than 49% of the population in the county, which has a 13.2% rate of poverty and an 18.26% rate of disability; and Somerset County has a health assistance enrollment of more than 43% of the population, with a 12% rate of poverty and a 16.88% rate of disability. She also said Medicaid does not provide dollar-for- dollar reimbursement for cost of care, so FQHC and community health centers, such as Hyndman, could face significant losses or closures if funding is decreased. According to a United Way of the Southern Alleghenies fact sheet, HHS downsizing may include the Centers for Disease Control and Prevention, the Food and Drug Administration, the Low Income Heating Energy Assistance Program, National Institutes of Health and the Division of Environmental Science and Practice. 'For residents of our region, this means a weakened ability to respond to a public health crisis, fewer prescription drugs tested and made available to the public, limited cancer research, the loss of federal tobacco and smoking cessation programs, threats to food safety, no federal lead abatement programs for water systems and the loss of funding that provides home heating assistance,' the information said. The United Way compiled this information in collaboration with the Center for Population Health, the 1889 Foundation, Vision Together 2025, Lee Initiatives Inc. and the Community Foundation for the Alleghenies. Those type of agency partnerships are a silver lining to the situation, in McMillan's opinion. 'I think what's really good right now about the health and human services community is we've been working collaboratively for some time,' she said. McMillan pointed to the Health and Welfare Councils in Cambria and Somerset counties that track data and trends while also partnering on community initiatives as an example of this work. Funding cuts One area agency already feeling the pinch of federal cuts is the Cambria County Drug and Alcohol Program. Administrator Fred Oliveros said he's received word from the Substance Abuse Mental Health Services Administration that COVID-19 pandemic funding was terminated as of March 24 because 'the pandemic is over' and 'the grants are no longer necessary.' That includes dollars from the American Rescue Plan Act and the Coronavirus Preparedness and Response Supplemental Appropriations Act. The county program was awarded $70,375 from the CPRSA stream, and a combined $412,918 from ARPA – $192,000 for treatment services and $220,918 for prevention. Oliveros said that, thankfully, the CPRSA funding was spent and a majority of the ARPA treatment money was designated as well – about $13,000 has not been reimbursed yet. That treatment grant was used to supply methadone maintenance to 71 people and rehabilitation services to 26 people. 'If we did not have this $192,000, our budget would be hurting,' Oliveros said. 'People come to us because they don't have insurance to pay for treatments, and without these funds they would not receive that treatment.' Although that issue was avoided, the majority of the prevention allocation was not designated before the ARPA cut was announced. Oliveros said he planned to use around $100,000 from that source to support operations at Flood City Youth Fitness Academy from March to the end of the fiscal year on June 30 after a state Compulsive and Problem Gambling grant was expended. Roughly $25,000 in ARPA prevention money was also budgeted for The Learning Lamp's Cognitive Behavioral Intervention for Trauma in Schools and Strong Families Program offerings. Due to an employment change at the Drug and Alcohol Program, the contribution to The Learning Lamp programs decreased to around $4,000, which Oliveros said is a small relief, but as far as the fitness center, he's unsure what will happen moving forward. Oliveros said there is some hope the funding may be restored because of a lawsuit about the ARPA cuts brought by several states, including Pennsylvania, although that is still being litigated. Another contract impacted by this change is with Beginnings Inc. The county program has a deal for up to $57,598 to enhance Beginnings' Parents as Teachers program – supporting transportation and food for group connections – and at least some of that is on hold as well. Oliveros said he's also seriously concerned about potential cuts to Medicaid, which assists with drug, alcohol and behavioral health treatments. He noted possible cascading impacts on other systems, such as prisons, coroners' offices, hospitals and clinics, should the drug and alcohol programs lose funding. Cambria County's service helped 556 unique clients from July 1, 2023, to June 30, 2024, providing assistance that ranged from inpatient detox management and outpatient maintenance to treatment and rehabilitation. That added up to more than $1 million for that year. Patient concerns Jeanne Spencer, Conemaugh Family Medical Clinic program director, said several of her patients have shared their concerns about uncertainty regarding the future of Medicaid and Medicare. 'They're worried that their benefits are going to decrease,' she said. 'Everything's in flux. News changes from hour to hour. These are people's lives and they don't know.' A majority of the patients at the Conemaugh clinic rely on Medicaid and Medicare, Spencer said. 'The family medical center really focuses on an indigent population, and it's been really good for the working poor in our community,' she said. With the potential for cuts, Spencer is worried people will choose not to seek care because they can't afford it. Stratta said he's already seen a lot of people at the Hyndman clinics who have end-stage disease symptoms that, if they were seen earlier, could have prevented those issues, such as diabetes and hypertension. Other preventable concerns that Hyndman is attempting to address include dental care. The clinic is one of two in Cambria County that takes Medicaid, which coupled with transportation barriers creates a dental desert in Cambria County, Stratta said. That's where the provider's mobile unit has been handy since 2021. Staff are able to take dental care to patients, including check-ups, fillings and extractions. Stratta said the unit goes to a lot of schools and community centers and the offering is expanding in Bedford County, with a waitlist to the end of 2026. 'We're there trying to provide that service they desperately need,' Stratta said. Spencer advocated for people to reach out to their elected officials to address these matters. 'As people learn more about how this affects them, I think it's important to speak to the legislators and tell them how it is on the ground,' she said.
Yahoo
10-03-2025
- Health
- Yahoo
The FACE Act was enacted to protect reproductive health clinics − here's why its history matters today
Soon after taking office for a second time, President Donald Trump pardoned anti-abortion activists who had blockaded and restricted access to the entrance of a reproductive health clinic in Washington, D.C., in October 2020. These protesters were convicted of violating the federal Freedom of Access to Clinic Entrances Act. Protesting outside clinics is a way for conservative anti-abortion activists to directly influence access to reproductive health care. The FACE Act prohibits the use of force or threat toward people trying to obtain or provide reproductive health services. It was created to limit the anti-abortion movement's tactics outside clinics, requiring that protesters cannot physically stop patients from walking into clinics and receiving care. But demonstrations outside of clinics are still common. My own research has shown the effectiveness of the anti-abortion movement in influencing the landscape and language of reproductive health care and politics in the U.S. through actions such as protests outside clinics. In Trump's second term, the Justice Department has said that it will not prosecute demonstrators unless there are 'extraordinary circumstances' or in cases involving 'significant aggravating factors' such as 'death, serious bodily harm, or serious property damage.' In this post-Roe v. Wade moment, I argue that it is important to know the history of the FACE Act. The FACE Act was signed by President Bill Clinton in 1994 to guarantee access to abortion and reproductive health care that was, at the time, protected by the 1973 Roe v. Wade Supreme Court decision under the 14th Amendment. Clinics that provide abortions have been subject to public harassment since the early 1970s, particularly following the expansion of access to abortion and reproductive health care more generally. After the passage in 1970 of Title X of the Public Health Service Act, which authorized federal funding for reproductive health services, abortion opponents began staging protests. But public support for reproductive rights, including abortion, was growing – along with the relaxation of government restrictions on the procedure. Abortion foes also protested the legalization of abortion in New York state that same year. Following the legalization, the first Planned Parenthood health center to provide abortion services was established. The legalization in New York eventually led to the Roe v. Wade decision that protected abortion at the federal level. By the 1970s, the movement against abortion had become a cohesive coalition of conservative Catholics and Protestants. They argued that providing reproductive health care was immoral because they believed that life begins at conception. The white evangelical anti-abortion movement, which followed, pursued many of the physical blockade and other tactics of early Catholic groups. Operation Rescue, founded in 1986, was one of the largest evangelical groups that protested outside of clinics. During its protests, the movement's members held up signs with images of aborted fetuses to scare patients into leaving the clinic. They also sat or lay down in front of clinics, using their bodies to physically block patients from entering. About 1,000 people were arrested for blockading clinics through Operation Rescue on Oct. 30, 1988. Evangelical and Catholic groups working together, such as the Pro-Life Action League, still use these same tactics today. The FACE Act protects clinics from being physically threatened, blockaded or damaged. It also protects patients going into clinics from being physically or verbally harassed. Before the FACE act, protests frequently turned violent. In March 1993, David Gunn, an abortion provider and clinic director, was shot and killed by an abortion opponent outside a clinic in Pensacola, Florida, as he was walking in to work. Since 1993, at least 11 people have been killed in abortion clinic attacks in cities across the country, including Buffalo, Birmingham, Wichita and Boston. The FACE Act was one of the first laws to physically protect reproductive health clinics. Several state and local laws created 'buffer' zones around clinics, which were upheld by the Supreme Court decision Hill v. Colorado of 2000. This case upheld a Colorado law that prohibits individuals from approaching a patient within 8 feet of a health care clinic to protest or distribute educational materials. However, only three states and five municipalities have successfully passed buffer laws so far. There continues to be pushback. In February 2025, the Supreme Court refused to hear arguments challenging existing local buffer laws. However, many anti-abortion advocates continue to bring related cases, citing their rights to protest under the First Amendment. A key aspect of these protests is the concept of 'public witness.' Public witnessing draws from the evangelical belief of witnessing – testifying about God's message to save people's souls. Protesters outside clinics believe they are sharing God's truth through acts of disobedience, including singing, praying and reciting scripture loudly during clinic hours. Contemporary activists in the anti-abortion movement call these tactics 'sidewalk counseling,' believing they are counseling patients walking into reproductive health care clinics about the dangers of abortion while standing on the sidewalk in front of the clinic. These activists tell patients that abortion causes infertility, mental health disorders and cancer – claims that have been medically debunked. Today, anti-abortion activists often congregate outside clinics on days they know a doctor will be on site to provide abortion care. I've interviewed many of these protesters, some of whom scream and cry as they lay prostrate on the sidewalk; they blast Christian music to distract and disorient patients seeking medical care. Protesters sometimes also use violent tactics near the clinic. In 2012, protesters set fire to a Planned Parenthood clinic in Wisconsin; in 2020, they threw a Molotov cocktail at a Planned Parenthood clinic in Florida; and in 2022, they attached locks to the gate of a New York clinic and poured glue to seal it. At the annual March for Life national anti-abortion demonstration on Jan. 24, 2025, one of the major celebrations was Trump's pardon of anti-abortion extremists. There was also a call to repeal the act that imprisoned them in the first place and a bill introduced in Congress that would repeal prohibitions related to the FACE Act. If the FACE Act is repealed, I argue that this will empower anti-abortion advocates to continue clinic blockades and other direct actions that will prevent patients from seeking reproductive health care. This article is republished from The Conversation, a nonprofit, independent news organization bringing you facts and trustworthy analysis to help you make sense of our complex world. It was written by: Micki Burdick, University of Delaware Read more: The fear of deportation hangs over unauthorized workers trying to fight exploitation, but all workers in the US have rights Anti-abortion rights activists navigate a new, post-Roe landscape, as state bans mean they can 'save babies' How the threat of 'taxpayer-funded abortion' is being used to mobilize conservative religious voters Micki Burdick does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
