GOP Lawmakers Scrutinize Low-Cost Drug Program

Law360, New York (March 6, 2012, 8:08 PM EST) -- Tensions between pharmaceutical firms and safety net hospitals are in the spotlight after four Republican lawmakers Monday outlined a wide-ranging inquiry into a discount drug program. 

In letters released Monday, three senators and a congressman raise questions about the so-called 340B program, which provides reduced-cost drugs to 16,500 health clinics and hospitals that serve low-income patients. Under the program, manufacturers must provide discounts — often in the range of 20 percent to 50 percent — in order to have their drugs covered by Medicaid.

The lawmakers...
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