AXIOS: FIRST LOOK - SENATE GETS A 340B PHARMACY BILL

Sen. Peter Welch is introducing a 340B bill Wednesday that would clarify that providers in the program can access discounted drugs through contract pharmacies, per details first provided to Axios.

Why it matters: The 340B PATIENTS Act adds to mounting interest in bothchambers in clarifying requirements around the program — a perennial source of friction between drugmakers and hospitals.

What's inside: The bill makes clear that manufacturers under the 340B statute must provide drug discounts to covered entities "regardless of the manner or location in which a drug is dispensed," including contract pharmacies.

• That means drugmakers couldn't place conditions on the purchase and use of the drugs, and the bill would impose monetary penalties for violations.
• The House version of the bill, sponsored by Rep. Doris Matsui, was introduced in March.
• The bill is supported by provider groups including the American Hospital Association, America's Essential Hospitals and 340B Health.

State of play: This provider-friendly legislation comes amid a flurry of activity at the state and national level around the 340B program.

• Johnson & Johnson recently changed its 340B policy to make providers pay the full price of two popular drugs upfront and then submit documents for rebates.
• Meanwhile, states have enacted laws blocking manufacturers from limiting the availability of drugs in the program.

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