MATSUI, WELCH REINTRODUCE LEGISLATION TO PROTECT 340B DRUG PRICING PROGRAM

WASHINGTON, D.C. – Today, Congresswoman Doris Matsui (D-CA) and Senator Peter Welch (D-VT) introduced the 340B PATIENTS Act, legislation that would protect and strengthen the 340B program by codifying 340B providers’ ability to use contract pharmacies to dispense 340B discounted drugs. This would ensure that 340B patients are able to pick up their prescriptions at any local pharmacy, and that safety-net providers are able to continue providing expanded medical and social services to their communities using their 340B discount savings.

“After Republicans cut almost $1 trillion from our health care safety net, it’s more important than ever that we preserve and strengthen the remaining lifelines keeping our providers afloat,” said Congresswoman Matsui. “That’s why I’m reintroducing my legislation to protect the 340B program today. For more than 30 years, the 340B program has been a lifeline for our nation’s most vulnerable patients – providing free or discounted prescription drugs and important services at no cost to taxpayers. Unfortunately, Big Pharma is increasingly finding ways to undercut this mission and reduce patient access to lifesaving services. The 340B PATIENTS Act sets clear ground rules to prevent manufacturers from continuing these practices and strengthen the 340B program for years to come.”

“Rural America is hit by two crises: affordability and access to care. Programs like 340B are vital tools to address this problem, helping rural patients and communities access the affordable medical and social services they need. President Trump and Republicans’ tax bill has already threatened access to rural care, which makes protecting tools like 340B all-the-more critical,” said Senator Welch. “I’m all for making sure the 340B program is working the way it’s intended, but Big Pharma has been trying for years to get rid of it altogether. This commonsense bill secures access to this funding stream and supports rural and vulnerable patients.” 

Under the 340B program, drug manufacturers agree to provide outpatient drugs at a discount to safety-net providers that serve our most vulnerable Americans, including low-income Medicare, Medicaid and Supplemental Security Insurance patients. These providers include Medicare disproportionate share (“DSH”) hospitals, children’s hospitals, free-standing cancer hospitals, and rural hospitals. Providers use the savings from the 340B program to stretch federal resources further, providing critical services to underserved communities without any additional federal spending.

Many 340B providers use contract pharmacies to provide the widest possible range of services to their patients. However, since 2020, drug manufacturers have started denying or restricting access to 340B discount prices for drugs dispensed through contract pharmacies.

Specifically, this legislation would:

• Clarify that manufacturers are required to offer 340B discount prices to covered entities regardless of the manner or location in which a drug is dispensed, including if a covered entity uses a contract pharmacy to dispense 340B drugs to the entity’s patients.
• Ensure that manufacturers cannot place conditions on the ability of a covered entity to purchase and use 340B drugs, regardless of the manner or location in which the drug is dispensed, including through contract pharmacies.
• Impose civil monetary penalties on manufacturers that violate these statutory requirements and prohibitions.

Full text of the bill is available HERE.

This legislation is cosponsored in the U.S. House of Representatives by U.S. Representatives Lori Trahan (D-MA), Paul Tonko (D-NY), Sharice Davids (D-KS), Betty McCollum (D-MN), Shri Thanedar (D-MI), Rashida Tlaib (D-MI), Maxwell Frost (D-FL), Kathy Castor (D-FL). 

This legislation is cosponsored in the U.S. Senate by U.S. Senator Jeff Merkley (D-OR).

Endorsing organizations: 340B Health, America’s Essential Hospitals, American Hospital Association (AHA), Advocates for Community Health, 340B Hallway, National Rural Health Association, Association of American Medical Colleges (AAMC), Catholic Health Association of the United States of America, Children’s Hospital Association, ASHP, AIDS Healthcare Foundation, AIDS United, 340B Matters, the Craneware Group, University of California Health, California Hospital Association, and Bi-State Primary Care Association.

“The safety-net hospitals participating in the 340B drug pricing program applaud Congresswoman Matsui and Senator Welch for being 340B champions and for introducing this vital legislation,” said Maureen Testoni, President and CEO, 340B Health. “This bill would end the drug industry’s harmful efforts to block 340B covered entities from partnering with community and specialty pharmacy partners on dispensing outpatient drugs to their patients. These actions have stripped billions of dollars in 340B savings from the health care safety net and have hurt patient access to care. 340B hospitals deliver 77% of Medicaid hospital care and 67% of unpaid care, and they need these protections in the face of a wide array of financial challenges to their patient care missions. We call on congressional leaders to support this vital legislation for the sake of patients living with low incomes and those in rural areas.” 

“The American Hospital Association thanks Representative Matsui and Senator Welch for their leadership in protecting the 340B drug pricing program and the patients and communities that benefit from it. Their important bill — which the AHA strongly supports — would put an end to drug companies’ harmful restrictions on the ability of 340B hospitals to provide critical medications to their patients through partnerships with community and specialty pharmacies,” said Aimee Kuhlman, AHA’s vice president of advocacy and grassroots. “For far too long, these restrictions have made it more difficult for patients to access their medications while multinational drug companies have enjoyed record financial success.”

“ASHP strongly supports the 340B PATIENTS ACT, which will ensure pharmaceutical manufacturers honor their obligations to covered entities and contract pharmacies under the 340B Drug Pricing Program,” said Tom Kraus, Vice President of Government Relations, ASHP.

Congresswoman Matsui has long led efforts to support the 340B Program. In May 2021, she introduced a bipartisan bill to provide temporary waivers for certain 340B program eligibility requirements due to the COVID-19 health emergency. She has also led a series of letters highlighting the issues addressed by this legislation, most recently in March 2021.

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