FEDERAL LEGISLATION WOULD BAN HARMFUL DRUG COMPANY RESTRICTIONS ON 340B
WASHINGTON, D.C.— Today, lawmakers introduced bicameral legislation to ban pharmaceutical companies from restricting covered entities’ access to 340B drug pricing program discounts through community and specialty contract pharmacies. The bill would end harmful drug company policies that have been in place since 2020 and that have stripped billions of dollars from the health care safety net in the name of boosting drugmakers’ profits.
Rep. Doris Matsui (D-Calif.) and Sen. Peter Welch (D-Vt.) introduced the 340B Pharmaceutical Access To Invest in Essential, Needed Treatments & Support Act, or 340B PATIENTS Act. This bill would require drug companies to provide statutorily mandated discounted pricing to eligible hospitals, health centers, and clinics that partner with community and specialty pharmacies to dispense drugs to their patients. It also would ban drugmakers from imposing restrictive conditions on covered entities’ access to these pharmacies. Noncompliant drug companies would face millions of dollars in civil monetary penalties for every violation of these requirements.
The following statement is attributed to 340B Health President and CEO Maureen Testoni:
“We thank Congresswoman Matsui and Senator Welch for being such strong champions of the health care safety net and the 340B covered entities who play a massive role in delivering vital care to patients in need. When drugmakers cut off access to discounted pricing, they are depriving covered entities of vital care resources, including the 340B hospitals that provide 77% of Medicaid hospital care and 67% of unpaid care. These attacks on 340B jeopardize comprehensive specialty care and support for patients with low incomes and those living in rural areas.”
“The 340B PATIENTS Act clearly states that these harmful pharmaceutical industry actions must end. More than 20 states have enacted bipartisan legislation to protect 340B covered entities within their borders, recognizing how integral these providers are to serving vulnerable patients. Now, congressional leaders should take up and approve this legislation to extend these protections throughout the U.S. on behalf of the millions of patients whose lives are better because of 340B.”
Contact: Jon Tilton at jon.tilton@340bhealth.org or 202-536-2285