Sen. Cassidy Expands His 340B Investigation to CVS and Walgreens

Last week, the Ranking member of the Senate HELP Committee expanded his 340B investigation to include the nation’s two largest contract pharmacy companies. The senator sent letters to both CVS and Walgreens, seeking detailed information on a long list of topics, including:

  • How much money they earn from the program, and through what fees/mechanisms
  • How many covered entities they work with
  • The relationship between CVS and their 340B TPA, Wellpartner

The letter highlighted that 340B does not limit the fees that contract pharmacies can charge covered entities or third-party administrators (TPAs), and that the two companies realize “significant profits” as a result. The letters are part of the senator’s ongoing probe into 340B, which began in September with letters to two major health systems and was expanded to two large community health centers in November. Sen. Cassidy has not specified how he intends to use any findings from his inquiries, and it remains unclear if his probe has the support of other members of the HELP Committee.

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