Bipartisan 340B Legislation Introduced in the House - August 2, 2011

Three U.S. Representatives on July 27 introduced a bipartisan bill that would extend the 340B drug discount program to inpatients and make other improvements . The 340B Improvement Act of 2011, or H.R. 2674, is sponsored by Rep. Cathy McMorris Rodgers (R- Wash.), along with Bobby Rush (D-Ill.) and Jo Ann Emerson (R-Mo.).

This legislation builds on the successful 340B Drug Discount Program, which currently reduces the cost of outpatient drugs to health care providers serving a large volume of low-income and uninsured patients. In addition to expanding to the inpatient setting, the bill also lifts the discount ban on “orphan drugs” for rural and free-standing cancer hospitals. While disproportionate share hospitals and children’s hospitals can receive discounts for pharmaceuticals intended for use in treating rare diseases or conditions, the new categories of hospitals are prohibited from these discounts. The bill would also make other changes to strengthen the 340B program such as eliminating unnecessary reporting requirements.

NAPH is pleased that this year’s lead sponsor, Rep. Rodgers, serves on the Energy and Commerce Health Subcommittee, which has jurisdiction over the 340B and Medicaid programs.

Please reach out to your Congressional delegation and encourage them to cosponsor the legislation. A detailed summary and a press release by Safety Net Hospitals for Pharmaceutical Access is available online. For more information, please contact SNHPA’s Director of Government Relations Kara Stencel at kara.stencel@snhpa.org.