Drug Manufacturer Sues North Dakota Over 340B Drug Pricing Law
A major pharmaceutical company has filed a lawsuit against the state of North Dakota, challenging a recently enacted law concerning the 340B drug pricing program. The lawsuit, filed in North Dakota federal court, alleges that House Bill 1473 is unconstitutional and will significantly harm the company’s profitability.
what is North Dakota House Bill 1473?
North Dakota’s House Bill 1473,signed into law by Gov. Kelly Armstrong in April 2025, mandates that drug manufacturers participating in the federal 340B program offer more important discounts on medications House Bill 1473. This bill directly impacts pharmaceutical companies involved in the 340B program, which aims to provide affordable medications to vulnerable populations.
Did You Know? …
The 340B program requires drug companies to participate in order to be part of Medicare and Medicaid programs.
Understanding the 340B Drug Pricing Program
Established in 1992, the 340B program requires participating drug companies to provide discounted medications to qualifying hospitals and other medical facilities that serve low-income communities Health Resources and Services Administration. The program is crucial for healthcare providers serving vulnerable populations, enabling them to stretch scarce federal resources and provide thorough care.
The Core of the Dispute
the drug manufacturer argues that the North Dakota law infringes upon its constitutional rights and will lead to ample financial losses. The state, however, maintains that the law is constitutional and essential for ensuring affordable access to medications for its residents. The state denies the company’s claims and is prepared to defend the policy in court.
Impact on Rural Healthcare
Proponents of the 340B program emphasize its importance for rural states like North Dakota, where it subsidizes medication costs for patients and allows hospitals to provide a wider range of services Rural health Data Hub. The North Dakota State Legislature’s house Industry, Business and labor Committee convened in February 2025 to discuss the program’s impact on hospital funding [[3]].
State Actions Regarding 340B drug Pricing
North Dakota is not alone in addressing 340B drug pricing. Several states have enacted laws prohibiting manufacturers from restricting 340B-priced drugs to contract pharmacies in 2025, including New Mexico and South Dakota [[1]]. These legislative actions reflect a growing concern among states about ensuring access to affordable medications through the 340B program.
| State | Action | Effective Date |
|---|---|---|
| North Dakota | House bill 1473 – Requires manufacturers to sell more drugs at a discount. | April 2025 |
| New Mexico | Law prohibiting manufacturers from restricting 340B-priced drugs to contract pharmacies. | 2025 |
| South Dakota | Law prohibiting manufacturers from restricting 340B-priced drugs to contract pharmacies. | 2025 |
The Evergreen Context of 340B
The 340B program has faced scrutiny and legal challenges over the years,with debates focusing on the appropriate scope of the program and the distribution of savings. Pharmaceutical manufacturers have raised concerns about potential abuses of the program, while patient advocacy groups and healthcare providers emphasize its vital role in supporting access to care for underserved populations. The evolving landscape of 340B drug pricing laws reflects ongoing efforts to balance the interests of drug manufacturers,healthcare providers,and patients.
Frequently Asked Questions About 340B Drug Pricing
- What is the 340B drug pricing program?
The 340B program, established by Congress in 1992, mandates that participating drug companies provide discounted medications to eligible hospitals and medical facilities serving low-income communities.Participation in the 340B program is required for drug companies to engage in federal Medicaid and Medicare programs.
- Why is a drug manufacturer suing North dakota?
A drug manufacturer is suing North Dakota over House Bill 1473, a new law requiring them to sell more medications at a discount under the 340B drug pricing program. The manufacturer claims the law is unconstitutional and will negatively impact their profits.
- What does North dakota’s House Bill 1473 do?
North Dakota’s House Bill 1473, signed into law in April 2025, compels drug manufacturers participating in the federal 340B program to offer more of their medications at discounted prices.
- What is the state’s response to the lawsuit over the 340B drug pricing law?
The state of North Dakota denies the drug manufacturer’s claims and is prepared to defend the constitutionality of House Bill 1473 in federal court.
- How does the 340B program benefit rural areas like North Dakota?
Proponents of the 340B program argue that it is crucial for rural states like North Dakota, as it subsidizes medication costs for patients and enables hospitals to offer a broader range of services [[2]].
- What are other states doing regarding 340B drug pricing?
Several states have enacted laws prohibiting manufacturers from restricting 340B-priced drugs to contract pharmacies in 2025, including New Mexico and South Dakota [[1]]. This indicates a growing trend of states seeking to protect and expand access to discounted drugs through the 340B program.
Disclaimer: This article provides general information and should not be considered legal or financial advice. Consult with a qualified professional for specific guidance.
What are your thoughts on the 340B drug pricing program? How do you think this lawsuit will impact access to affordable medications? Share your opinions in the comments below!
