Since the start of 2025, 340B providers have experienced reduced 340B savings on Januvia, Janumet, Janumet XR, Atrovent HFA and Spiriva Handihaler. 340B savings on these drugs will drop even further starting on July, 1, 2025. These reductions are the result of manufacturers’ decision to drop the Wholesale Acquisition Cost (WAC) for these drugs effective Jan. 1, 2025. Lower WAC prices lead to lower 340B savings, by causing:
- Lower reimbursement from insurers, starting almost immediately (aka in January).
- Higher 340B prices starting on July 1, when the new quarterly 340B discount (which lags six months behind changes in a drug’s WAC) will no longer include an “inflationary penalty.” Instead, the only discount will be the standard 340B discount of 23.1% for brand-name drugs.
This two-step reduction in 340B savings follows the same pattern that CHCs saw in 2024 with many diabetes drugs and inhalers, when a change in how state Medicaid rebates are calculated, led manufacturers to reduce WAC levels for many insulins and inhalers.