SENATE COMPANION BILL WOULD END DRUG COMPANY RESTRICTIONS ON 340B
WASHINGTON, D.C.— Sen. Peter Welch (D-Vt.) has introduced legislation to ban pharmaceutical companies from restricting access to 340B drug pricing program discounts through community and specialty contract pharmacies. The bill would prohibit restrictive drugmaker policies that have deprived safety-net hospitals, health centers, and clinics of billions of dollars in lost 340B savings over the past four years they have been in place.
The 340B Pharmaceutical Access To Invest in Essential, Needed Treatments & Support Act, or 340B PATIENTS Act, is the Senate version of a bill that Rep. Doris Matsui (D-Calif.) introduced in March. It would clarify that the federal 340B statute does not permit drug companies to impose restrictions or conditions on covered entities’ access to 340B discounts through the pharmacy partners that dispense the drugs to their patients. Drug companies that violate these requirements would be subject to civil monetary penalties of as much as $2 million per day.
The following statement is attributed to 340B Health President and CEO Maureen Testoni:
“The safety-net hospitals participating in 340B applaud Senator Welch and Congresswoman Matsui for leading the crucial fight against drug companies’ 340B restrictions. For years, the pharmaceutical industry has lobbied Congress to cut back drug discounts they must contribute to the safety net and boost their already astronomical profits, but these lawmakers and other 340B champions on Capitol Hill have fought back those efforts. This important legislation would make it crystal clear that drugmakers cannot go around Congress by imposing unilateral limits on 340B.”
“Since the first drug companies started cutting 340B discounts during the height of the COVID-19 pandemic in 2020, they have harmed care for patients who rely on 340B hospitals, health centers, and clinics. These include the 340B hospitals that provide 77% of Medicaid hospital care and 67% of unpaid care in the U.S. We can see the steep costs of these drugmaker actions in the damage they have caused safety-net hospitals’ ability to expand access to needed drugs and care for their patients most in need.”
“The 340B PATIENTS Act states that this harm must stop. We call on members of Congress and the congressional leadership in both chambers to support this crucial legislation for the benefit of the patients who have access to vital care and support because of 340B.”
Contact: Jon Tilton at jon.tilton@340bhealth.org or 202-536-2285