CHA News Article

Health Subcommittee Holds Hearing on 340B Program

The House Energy and Commerce Committee, Subcommittee on Health today heard more than a dozen bills and discussion drafts related to the 340B drug discount program and a recent Government Accountability Office report raising questions about 340B contract pharmacies. 

A variety of bills were introduced before the hearing, including:

  • H.R. 4392, which would void recent outpatient prospective payment system payment changes for certain drugs and biologicals purchased under the 340 program
  • H.R. 4710, which would establish a moratorium on the registration of certain new 340B hospitals and associated sites
  • H.R. 5598, which would require certain disproportionate share hospitals under the 340B program to submit reports on low-income use of outpatient hospital services
  • H.R. 6071, which would clarify the intent of the program and enhance program integrity
  • H.R. 6240, which would provide for user fees under the program
  • H.R. 6273, which would ensure appropriate care by 340B entities for victims of sexual assault

The discussion drafts would raise the minimum disproportionate share adjustment percentage to qualify for the program to 18 percent for certain hospitals; provide for a 340B program administrator; define “patient” for program purposes; require the Department of Health and Human Services (HHS) to implement the Government Accountability Office’s recommendations related to 340B contract pharmacies; require covered entities to report certain information on savings from discounted prices under the program and the relationship between those savings and charity care expenditures; require HHS to conduct program audits in accordance with generally accepted government auditing standards; establish certain 340B fee amounts for certain low-income patients; and allow HHS to prescribe regulations to carry out the program.

Dr. Charles Daniels, chief pharmacist and associate dean at the University of California San Diego Health, was a witness at the hearing. He offered important testimony to help subcommittee members understand how the program works and how it benefits patients. CHA provided the attached flyer about the 340B program’s impact on patients to the California members of the subcommittee — Reps. Doris Matsui, Anna Eshoo and Tony Cardenas — to help them prepare for the hearing. 

The committee has not scheduled additional hearings or mark-ups, but HHS Secretary Azar earlier this week indicated that additional regulatory changes to the 340B program will be forthcoming.