The 340B program requires drug manufacturers to sell outpatient medications at discounted prices to eligible hospitals and clinics, enabling those institutions to stretch resources for low-income and uninsured patients. The hospitals contend that CVS's reimbursement structure captured these manufacturer discounts as corporate profit rather than allowing the savings to reach patient care—effectively converting the program's intended benefit into revenue for the pharmacy chain.
Attorneys tracking pharmacy benefit manager disputes should monitor these cases closely. The lawsuits target a major PBM on a substantial dollar figure and involve prominent academic health systems with resources to litigate. The spread pricing model alleged here—capturing 340B discounts through timing and reimbursement mechanics—may signal broader industry practices now facing legal scrutiny. CVS has declined to comment pending litigation.