STATEMENT ON THE BIPARTISAN PROTECT 340B ACT TO BAN DISCRIMINATORY PAYMENT POLICIES
WASHINGTON, D.C.— Reps. Abigail Spanberger (D-Va.) and Dusty Johnson (R-S.D.) introduced legislation today to prohibit discriminatory payment policies that pharmacy benefit managers (PBMs) and health insurance companies use to capture 340B drug pricing program savings that are intended for safety-net hospitals and other providers caring for patients in need.
The “PROTECT 340B Act of 2023” would ban PBMs and insurers from imposing policies that lower payments or impose different reimbursement rules for 340B covered entities and their pharmacy partners than they do for non-340B providers. PBMs and payers that violate these prohibitions would be subject to federal fines.
340B Health strongly endorses the PROTECT 340B Act and is advocating for Congress to pass the legislation. The following statement is attributed to 340B Health President and CEO Maureen Testoni:
“340B hospitals applaud Representatives Spanberger and Johnson for their strong leadership to protect safety-net providers from discriminatory payment behavior by pharmacy benefit managers and insurance companies. 340B savings provide crucial resources to hospitals and other providers caring for patients with low incomes and those living in rural communities. PBMs and payers undermine that investment in patient care when they pay less to covered entities based solely on their participation in 340B. This bipartisan legislation would ensure that those 340B dollars go to care for patients of the health care safety net as Congress intended and not into more profits for PBMs and insurers.”
Contact: David Glendinning at david.glendinning@340bhealth.org or 202-536-2289.