Matsui Introduces Legislation in Support of 340B Program
The SERV Communities Act Clarifies Program Intent, Enhances Program Integrity & Expands Program Eligibility
Washington, D.C. - Today, Congresswoman Doris Matsui (D-CA) introduced the Stretching Entity Resources for Vulnerable (SERV) Communities Act, legislation that clarifies the intent of the 340B Program, enhances program integrity, and protects and expands the program to meet the needs of the opioid crisis.
“Hospitals and clinics doing life-saving work rely on the 340B Program to help them provide inclusive and affordable care in their communities,” said Congresswoman Matsui. “Unfortunately, the program is being incorrectly used as a scapegoat for high drug prices by the Trump Administration. This legislation makes clear the importance of preserving the program so safety net providers can continue to serve low-income and vulnerable patients, while expanding it to help address the opioid crisis.”
Several hospital systems and community health clinics in California and across the country have expressed support for Matsui’s legislation including: 340B Health, America’s Essential Hospitals, American Hospital Association, Association of American Medical Colleges, California Hospital Association, California Primary Care Association, CommuniCare Health Centers, Dignity Health, Ryan White Clinics for 340B Access (RWC-340B), The Catholic Health Association of the United States, The Children’s Hospital Association, University of California Health (UC Health), and Vizient, Inc.
About the 340B Program: The 340B Drug Pricing Program, created in 1992, has made it possible for hospitals and clinics serving large populations of low-income and/or uninsured patients to purchase outpatient prescription drugs at a discount, with no cost to taxpayers. Eligible hospitals and clinics participating in the 340B Program, known as “covered entities,” must recertify their eligibility each year and are subject to annual audits through the Health Resources and Services Administration (HRSA), the agency that administers the program. The Affordable Care Act, recognizing the valuable work of covered entities, intentionally expanded 340B eligibility to include hospitals and clinics serving rural communities.