Richard Davis Comment Included in Modern Healthcare Article About Possible Impact of Tariffs on 340B Discounts

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A Modern Healthcare article about how increased tariffs on pharmaceuticals could impact the 340B drug pricing program included a quote from Richard Davis, a Milwaukee-based Quarles & Brady partner in the Health & Life Sciences Practice Group.

The article explored the possibility that potential new tariffs could increase the price drug makers pay for certain ingredients, leading to higher production costs and drug prices. In this scenario, some health care providers could receive higher 340B drug discounts, which might result in further efforts by the federal government to place limitations on the 340B program.

Davis noted that the Trump administration already is looking into ways to place restriction on 340B pricing. An excerpt:

The administration is also paving the way for regulatory changes that could limit 340B discounts.

Trump's executive order on drug pricing ordered federal agencies to conduct a survey to determine the hospital acquisition cost for outpatient drugs. The lack of survey data contributed to the 2022 Supreme Court decision that overturned the first Trump administration's cuts to the 340B program.

“The executive order signals a potential return to the Medicare Part B payment reductions for 340B drugs,” said Richard Davis, a healthcare attorney at law firm Quarles & Brady.

Please visit our Federal Policy Watch: Monitoring White House Developments page for more insight about navigating changes at the federal level.

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Originallly published in Modern Healthcare, May 5, 2025 (Subscription required.)

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