STAT+: Justice Department backs AbbVie in its bid to overturn a Colorado law guiding a drug discount program

STAT News · Feb 26, 2026 · Collected from RSS

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By Ed SilvermanFeb. 26, 2026 Pharmalot Columnist, Senior Writer The Department of Justice is backing AbbVie in its battle to overturn a Colorado law that prohibits pharmaceutical companies from placing restrictions on a controversial federal drug discount program. Created more than 30 years ago, the 340B Drug Pricing Program was designed to help hospitals and clinics care for low income and rural patients. To ensure the program achieves this goal, drug companies that want to take part in Medicare or Medicaid must offer their medicines at a discount — typically, 25% to 50%, but sometimes higher — to participating hospitals and clinics. But six years ago, many drugmakers began limiting some discounts when hospitals or clinics bought medicines and then shipped them to contracted retail or specialty pharmacies for patients to pick up or for delivery, instead of using their own in-house pharmacies. The drug companies alleged that using contract pharmacies led to abuses, such as duplicate billings, product diversions, and ineligible rebates. STAT+ Exclusive Story Already have an account? Log in This article is exclusive to STAT+ subscribers Unlock this article — plus in-depth analysis, newsletters, premium events, and news alerts. Already have an account? Log in View All Plans To read the rest of this story subscribe to STAT+. Subscribe